Attack on gold: “Buying or selling?”

Economist Dr. Louis Hobeika explains, in an interview with the “MTV” website, that economic crises are the main reason for the rise in the price of gold because individuals consider it their refuge, especially the pessimists among them, because it maintains its price over long periods and is not subject to speculation, so they rush to buy it whenever they sense a looming crisis. In sight. What happens in this case is that demand rises while supply remains the same because the quantity of gold is limited as it is not a product that is manufactured, which causes prices to rise significantly.

Hobeika points out that the whole world today is experiencing various disturbances, such as the war between Ukraine and Russia, which led to inflation and a rise in prices, all the way to the ongoing war in Gaza, and all of these developments have created ideal pessimistic conditions for a rise in the price of gold, even among major institutions that are not confident about the price of gold. What might happen in the future, which led to an increase in the price of the yellow metal.

Another factor that makes gold a popular haven during crises, according to Hobeika, is that it is easier to transport when wars break out and we are forced to flee with our possessions. “If we are forced to flee due to war or the like, an amount of gold or jewelry of high value can be placed in a small bag.” “Unlike money, land, and other property, which will be difficult to carry and transport with us,” in addition to the fact that cash may be damaged or burned, while gold is immune from such dangers.

Hobeika reveals that global crises have dramatically increased demand for expensive watches while companies are unable to produce more than normal quantities. This great demand is due to the ease of transporting them, as several watches can be placed on one hand worth hundreds of thousands of dollars and travel with them or escape when wars break out. Instead of having to carry bags containing these huge amounts of money.