More profitable than a bank deposit: how much Ukrainians could earn if they bought gold a year ago

In Ukraine, the cost of gold has increased by 25% over the year, while the rate on bank deposits is about 14%. At the same time, analysts believe that gold prices will continue to rise.

So, on March 23 last year, a troy ounce (31.1 g) cost UAH 56,429, and on March 23, 2023, the price was already UAH 70,876. The growth was about 25%. CNBC believes that gold prices have more room to rise as global banks grapple with a possible crisis.

Gold is trading at $1,940.68 an ounce. According to Refinitiv, in August 2020, the all-time high of gold was $2,075. “The extension of central bank gold purchases is a good sign for long-term prices,” said Randy Smallwood, CEO of Wheaton Precious Metals, a precious metals streaming company.

According to the World Gold Council, gold demand soared to an 11-year high in 2022 due to “colossal central bank buying”. Last year, central banks bought a 55-year high of 1,136 tons of gold.

At the end of March, Fitch Solutions predicted that gold would hit a high of $2,075 “in the coming weeks.” The firm attributed the outlook to “global financial volatility,” adding the expectation that gold “will remain expensive relative to pandemic levels in the coming years.”

As GLOBAL HAPPENINGS reported, the NBU tied the abolition of the fixed exchange rate not to a specific time, but to macroeconomic indicators. The regulator intends to keep the dollar at the level of UAH 36.56 until the situation on the foreign exchange market improves and inflation stabilizes.

Source: Obozrevatel

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