A golden opportunity for emerging markets

The price of gold is currently near record levels, thanks to its safe reputation during economic and geopolitical uncertainty. Central banks are opting for it, in a bid to diversify away from the US dollar and its Treasuries amid policy risks. This rise has benefitted major emerging markets that produce the commodity, providing a terms-of-trade windfall. When prices rise, it boosts the trade balance, strengthens the currency, and lowers economic risk. Large exporters of gold are likely to benefit from this, while investment in countries that produce it may increase. What other benefits does...