Anyone with an interest in financial happenings may have noticed more than a few mentions of “gold" in the news. Sure, some view it as a key asset to hold during periods of market volatility, but that doesn't quite explain the media's sudden love for gilded headlines.
So what gives? Several factors appear to be influencing spot prices, including investor expectations of a Fed rate cut, a weakening US dollar, and geopolitical instability in the Middle East. Many, including a number of central banks who have recently purchased gold, view it as a key asset to hold during periods of market volatility.1
When interest in gold is high, there’s a good chance you'll also see aggressive marketing. Some of these ads engage in clever sleight-of-hand, attempting to sell gold coins, bars, or other precious metal products for “collector” prices— which are almost always significantly higher than the market value of the gold itself.
If you’re interested in this or other topics concerning the latest market conditions or the larger forces behind the moves, let me know.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors.
1. Bloomberg.com, December 4, 2023. "Here’s How to Invest in Gold as It Hits an All-Time High."