Gold prices reached near-record highs in May, peaking at the $2,067 point, a milestone not achieved since March the previous year. The most recent surge was fuelled by the unsettled negotiations over the US debt ceiling. Janet Yellen, the Treasury Secretary, cautioned that the US economy is in danger of exhausting its cash reserves as soon as the start of June.
Prior to this, the gold prices were buoyed by investor unease stemming from turbulence within the banking sector. This anxiety was primarily incited by the collapse of Silicon Valley Bank and the subsequent acquisition of Credit Suisse by UBS (UBSG), which rattled investor confidence.
Short history of gold
Gold was first discovered by Ancient Egyptians over 4,000 years ago. Throughout centuries the precious metal was used as a store of value and showcase of wealth. In the modern day and age, gold’s demand has expanded to industrial use, most notably in production of electronics.
As with many commodities, gold’s price is highly influenced by the forces of supply and demand. Yet the yellow metal is also seen as an investment asset, preserving value throughout centuries. Some investors believe in its safe-haven quality and use gold to hedge against inflation and economic uncertainty.
Gold is denominated in US dollars, which means the precious metal has an inverse relationship with the greenback. The USD strength against other currencies hurts the price of gold as it becomes more expensive and hence less attractive for overseas buyers. Conversely, when the USD is falling in value, it fuels gold demand.
Gold can be bought as a bullion in its physical form, or traded through financial derivatives. Some investors choose exposure to gold-mining stocks, or gold-linked exchange-traded funds (ETFs).
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Although it is common to believe that safes and vaults are alike, there are distinct differences. This is where terminology can become confusing. Vault and safe are usually interchangeable. In technical terms, a vault can be described as a safe; However, a safe is not called a vault. The same applies to Coca-Cola: all Coca Colas can be sodas, but all Coca-Colas can not be sodas. You get a little idea from this example; the rest are apparent differences we will discuss below. The most common in between both is- They are used to keep your valuables safe.
What Is The Difference Between Them?
Both units are designed by the safe manufacturer to serve the same purpose. But the thing is, how are they different from each other? The construction and installation in your place create critical differences between them. Vaults are usually built into a building’s structure, while safes are freestanding, independent, and portable. Safes can also be installed into walls. A vault is generally treated as a room and reinforced with a steel door or other security standards.
A vault is essentially safe with steroids. While functionally identical, vaults are considered more permanent and specific to their location. A safe can be easily moved or picked up at your convenience on the other side. Safes can be found in homes and smaller businesses. You will most likely need to visit a bank or another establishment with many valuables to find a vault.
A vault is an immovable storage unit built into a structure such as a bank building. On the other hand, a safe is usually smaller and made from metal. Vaults can be as large as rooms and are made from steel-reinforced concrete metal boxes. Vaults can hold much more and larger items. Meanwhile, safes are typically made of steel and are smaller. They can also be carried around with a combination or digital lock. These safes are more affordable, practical, and offer the best security.
Can We Call Vault A Safe?
No. A vault is different from a safe because it has unique features. It is not like a safe. Instead, it has an additional level of security that protects against unauthorised access or damage from natural disasters such as fires, floods, and others. A vault is a wall-mounted unit that cannot be moved from one location to the next. Safes can also be mounted to walls or floors, and you can make them unmovable. A vault is not a large safe despite its many similarities.
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