The Banking Executive Magazine - May 2024 Issue

World Gold Resources been recognized by cultures for thousands of years. Throughout the centuries, people have continued to hold gold for various reasons. Soci- eties, and now economies, have placed value on gold, thus perpetu- ating its worth. It is the metal we fall back on when other forms of cur- rency don’t work, which means it al- ways has some value as insurance against tough times. Gold has historically been an excel- lent hedge against inflation because its price tends to rise when the cost of living increases. Over the past 50 years, investors have seen gold prices soar and the stock market plunge during high-inflation years. This is because when fiat currency loses its purchasing power to inflation, gold tends to be priced in those currency units and thus tends to rise along with everything else. Moreover, gold is seen as a good store of value, so people may be encouraged to buy gold when they believe that their local currency is losing value. Gold retains its value not only in times of financial uncertainty but also in times of geopolitical uncer- tainty. It is often called the “crisis commodity” because people flee to its relative safety when world ten- sions rise. During such times, gold often outperforms other investments. Its price often rises the most when confidence in governments is low. WEAKNESS OF THE US DOLLAR Although the US dollar is one of the world's most important reserve cur- rencies, when the value of the dollar falls against other currencies, as it did from 1998 to 2008, this often prompts people to flock to the secu- rity of gold, which raises gold prices. The price of gold nearly tripled from 1998 to 2008, reaching the $1,000- an-ounce milestone in early 2008 and nearly doubling from 2008 to 2012, rising above the $2,000 mark. The decline in the US dollar then oc- curred for a number of reasons, in- cluding the country’s large budget and trade deficits and a large in- crease in the money supply. UNION OF ARAB BANKS GOLD GATEWAY The Union of Arab is establishing the Arab Gold Gateway, Arab Gold Gateway, a unique digital portal to knowledge about gold resources tai- lored and customised to the need of the Arab world. The Union of Arab Banks Arab Gold Gate is a leading digital platform in the Arab world and in multiple lan- guages The Arab Gold Gateway is the first in the Arab world to provide gold track- ing, learning and trading services and opens the door for gold syndicates and traders, mineral exploration companies and central banks to join. The Arab Gold Gateway services include: • Gold Price Tracking • Monitoring gold reserves at central banks • Tracking the volume of gold usage in various sectors • Tracking the world's gold produc- tion • Gold Mine Statistics • Tracking gold-denominated cryp- tocurrencies • History of Gold Systems • Research on the development of gold-backed digital currencies • Development of sandboxes to de- velop gold-backed financial prod- ucts • Conferences and seminars • Newsletter • Publications • Gold Trading • Trading gold-backed digital curren- cies. the BANKING EXECUTIVE 12 ISSUE 185 MAY 2024 A unique digital portal to knowledge about gold resources tailored and customised to the need of the Arab world. Arab Gold Gateway UNION OF ARAB BANKS JOIN TRADE LEARN TRACK