The impact of global as well as political instability on the price of gold bullion in Australia

When it comes to political instability, there is no doubt whatsoever that Australia pretty much takes the cake as far as developing countries are concerned. Let’s compare Australia to another developed country, say Russia. As of 2013, President Putin of Russia was already in his second term, after completing his first one. His first term lasted well over 8 years (1999 to 2008). From 2012 to date, Putin has been winning in elections continuously. And during the interim period of 2008 to 2012, he was the Prime Minister!

In terms of political continuity in the first world, this is as good as it can every get. Now contrast this with Australia’s revolving chair (for lack of a better term) government.

In the 2013, Australian got off to a really great start to the year with Prime Minister Gillard at the helm. But within 6 months (by the end of June in fact), it was Prime Minister Rudd, at the top. A leadership squabble had given Rudd the top job in the lead up to a Federal election. Now, for someone who does not follow politics, it might seem like a one-off. But it gets worse.

We’re at the tail end of June 2013 only. Why only? Because by September, the position was taken over by Prime Minister Abbott. In 2015, 2 years later, PM Abbott became Prime Minister Turnbull. And even though Turnbull went on to win the 2016 election, last month we ended up with Prime Minister Morrison.

What we have had in Australia is a grand total of five PMs in as many years.

However, there is a silver lining here as well, and it should be noted and appreciated. Many, if not most, Aussie investors are pretty happy investing in the Australian local gold market rather than overseas. As a matter of fact, various financial studies have indicated that a substantial bulk of Australian investors is interested in the domestic precious metals market, as the main option for parking their investments.

In the long run this means that Aussie gold and Aussie silver is being purchased with Aussie cash. This means that for every dip in the commodities, the stock as well as the precious metals markets, there is a corresponding uptick as well.  This is where Gold Stackers silver bars come into the picture. They are largely immune to the political economy, and therefore they can be a great hedge in these uncertain times.

And for the market savvy investor, out to snag a good deal, the dips can easily become a windfall, provided that the investor is able to take advantage of all of the political instability around. But for this to happen, said investor needs to be well prepared, especially with regard to any potential dips in the gold bullion market. The only way to do that is by making sure that research and homework is done beforehand.

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