There is no metal in the history of the world that holds its profession and has such value as gold, which has been produced for many years. Gold played an important role in the world during times of peace and conflict in the 20th century. In a world surrounded by the risk of physical conflict or the threat of war in countries such as North Korea, the Middle East and trade wars between America, China, the EU and now Russia’s invasion of Ukraine, gold buyers still see gold as valuable way of protecting their wealth.
The way gold is used, stored and transferred has a huge impact on economic and military success in various wars. Gold and silver influenced the way the world was shaped and laid the foundation for the financial system as we know it.
Invasion of Spain
Spain has been trading gold since the 15th century. Gold discoveries made by Spain propelled it to becoming a global superpower. This vast amount of gold was not used in the domestic economy but rather, to fund Spain’s conquest of the new world. Right now, government does not use gold to stimulate the economy by investing in the manufacturing sector and the various types of industry it needs. Spain became a military superpower and the largest importer of goods in the world and because of its gold. So much of Spain’s gold moved to other productive economies that it began to devalue other precious metals. Spain’s lack of economic growth weakened the country, but also influenced future conflicts in Spain.
World War II
There are other examples of how gold was served during the American Civil War and during World Wars I and II. There are parallels to be drawn between as well. Countries with the most gold were able to command larger armies and fought longer and more intense wars.
Rebellion in the 1970s
The 1970s were changing fast. We saw the Iranian revolution in 1978, the Iran-Iraq war in 1979, the Soviet invasion. The price of gold rose by 23%, 38% and 126% at the end of the decade. During the 1990 Gulf War, the price of gold soared in response to the constant threat of war. But in 1991 the price eased back to pre-invasion prices. After the US attacks of September 11, 2001, the price of gold rose until the US invasion of Iraq in 2003. When rumors of US intervention in Syria and efforts to neutralize ISIS began to spread in 2014, the price of gold also rose. In these times, those who were holding gold bullion were better able to weather the storm. Melbourne bullion dealers, like most other gold traders in the world, t experienced a surge in people looking to buy gold bullion during these times.
The European Union has recently been struggling with the problem of immigrants coming to the country from various war-torn countries. This creates fear among people that potential terrorists may live among them. Russia invaded Ukraine and created sales rise as people sought to arm themselves against potential attacks, with the price of gold rising in response.
We are now at a unique point in our world history. Countries have bigger weapons, bigger armies, more sophisticated equipment and technology. We also have a more connected financial system than ever before. The story of the use of gold in conflict shows that it is not about the amount of gold a country holds, but how it is used for the benefit of its citizens. Now is the time to buy gold bullion to protect yourself when economic uncertainty and geopolitical tensions are at their highest.