As long as the economy keeps growing steadily, inflation stays low, and there are no serious military conflicts going on, investors lose interest in gold. But once a crisis strikes, things change quickly.
Right now investors are fleeing to safe havens: precious metals and government bonds. At the same time, the euro is getting weaker, and these two factors are causing a record increase in the price of gold on German exchanges – while the stock market in Europe is under pressure because of the ongoing conflict in Ukraine.
The ongoing crisis is yet another indication of the importance of holding physical gold. You'll see this particularly clearly if you try to put yourself in the shoes of the Ukrainian refugees as they have to escape, leaving behind all their possessions.
Gold holds a lot of value per unit of weight (so-called value density), and it's also highly mobile. You can exchange it for local currency in any country. And the amount of physical gold you could carry would allow you to survive for a while in a foreign country – you could use it to build a new and better life in a new location.
In other words, while other asset classes (stock, bonds, crypto) theoretically serve as a store of value, gold has proven its practical ability to store value over the course of millennia.
Nevertheless, this doesn't mean that the price of gold will keep growing indefinitely. If the crisis winds down in the short term, we'll see another serious correction in the precious metals market, since gold prices are also subject to speculations. But it should be clear by now that gold coins and bars are a crucial tool to protect one's wealth – and that, even if the current crisis is resolved, there will be another one. Our debt-based monetary system is so warped that it's now close to bursting – and the consequences will be dramatic.
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