{"id":6875,"date":"2020-06-09T21:49:48","date_gmt":"2020-06-09T20:49:48","guid":{"rendered":"http:\/\/qpol.qub.ac.uk\/?p=6875"},"modified":"2020-06-09T21:49:48","modified_gmt":"2020-06-09T20:49:48","slug":"how-the-us-government-seized-all-citizens-gold-in-the-1930s","status":"publish","type":"post","link":"https:\/\/blogs.qub.ac.uk\/qpol\/how-the-us-government-seized-all-citizens-gold-in-the-1930s\/","title":{"rendered":"How the US government seized all citizens\u2019 gold in the 1930s"},"content":{"rendered":"\n

With global financial markets in disarray, many investors are turning to classic safe havens. Gold is trading<\/a> above US$1,750 (\u00a31,429) per troy ounce, which is the standard measure \u2013 more than 15% above where it started 2020. Even after a strong rally since March, the S&P 500 stock market index is down nearly 10% over the same period.<\/p>\n\n\n\n

Gold confers familiarity during downturns. Its returns are uncorrelated with assets like stocks, so it tends to hold its value when they fall. It is also a good way of avoiding currency devaluation. It therefore features in any well diversified investor\u2019s portfolio, whether via gold-mining shares, gold funds<\/a>, bullion or whatever.<\/p>\n\n\n\n

Yet there are two slight caveats to viewing gold as a safe haven. Early in an economic downturn, gold prices often plummet with the rest of the market. This is from investors selling gold to offset losses<\/a> in shares and other assets. We saw this<\/a> in March, when gold fell 12% in two weeks, then quickly recovered. If the coronavirus causes more market panic, this could happen again.<\/p>\n\n\n\n

To continue reading, please click here.<\/a><\/p>\n\n\n\n

Article originally appeared in The Conversation.<\/a><\/p>\n\n\n\n

Dr Philip Fliers<\/a> is a lecturer in Finance in Queen’s Management School. <\/strong><\/p>\n\n\n\n

 <\/p>\n\n\n\n

The featured image<\/a><\/em> has been used courtesy of a <\/em>Creative Commons license. <\/em><\/a><\/p>\n\n\n\n

 <\/p>\n\n\n\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

During extreme economic crises, governments have been known to seize people\u2019s gold says Dr Chris Colvin and Dr Philip Fliers. <\/p>\n","protected":false},"author":2548,"featured_media":6879,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[59],"tags":[971,972,973,944],"class_list":["post-6875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-depression","tag-economic-downturn","tag-gold","tag-recession"],"mb":[],"acf":{"authors":{"simple_value_formatted":"","value_formatted":null,"value":null,"field":{"ID":9774,"key":"field_66d0cbf58f930","label":"Authors","name":"authors","aria-label":"","prefix":"acf","type":"relationship","value":null,"menu_order":1,"instructions":"","required":0,"id":"","class":"","conditional_logic":0,"parent":9772,"wrapper":{"width":"","class":"","id":""},"post_type":["authors"],"post_status":["publish"],"taxonomy":"","filters":["search"],"return_format":"id","min":0,"max":10,"allow_in_bindings":0,"elements":["featured_image"],"bidirectional":0,"bidirectional_target":[],"_name":"authors","_valid":1}},"description":{"simple_value_formatted":"","value_formatted":"","value":"","field":{"ID":9776,"key":"field_66d2183027749","label":"Description","name":"description","aria-label":"","prefix":"acf","type":"wysiwyg","value":null,"menu_order":3,"instructions":"","required":0,"id":"","class":"","conditional_logic":0,"parent":9772,"wrapper":{"width":"","class":"","id":""},"default_value":"","allow_in_bindings":0,"tabs":"all","toolbar":"basic","media_upload":0,"delay":1,"_name":"description","_valid":1}}},"jetpack_featured_media_url":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-content\/uploads\/sites\/76\/2020\/06\/gold-bars.jpg","jetpack_sharing_enabled":true,"amp_enabled":true,"mfb_rest_fields":["title","jetpack_featured_media_url","jetpack_sharing_enabled","amp_enabled"],"_links":{"self":[{"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/posts\/6875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/users\/2548"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/comments?post=6875"}],"version-history":[{"count":0,"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/posts\/6875\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/media\/6879"}],"wp:attachment":[{"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/media?parent=6875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/categories?post=6875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.qub.ac.uk\/qpol\/wp-json\/wp\/v2\/tags?post=6875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}