Here’s Why Everybody Seems To Be Buying Gold Bars These Days
Is it the perfect investment for uncertain times like these? GiphyNews that is entertaining to read
Subscribe for free to get more stories like this directly to your inboxPerhaps you’ve seen some of the articles about Costco’s foray into gold sales, a move that prompted members to scoop up the shiny metal almost as fast as it arrived. But the truth is that gold continues to be in demand no matter who’s selling it — despite the fact that its price has been breaking all-time highs left and right lately.
Exploring the causes
So what’s behind this rush to collect gold? Monetary and geopolitical experts say it comes down to a few major factors.
- Central banks: A growing number of nations are shifting away from their reliance on the U.S. dollar as a reserve currency, and central bankers have been stockpiling gold as a foundation for their goal.
- World affairs: With much of the globe in a precarious state, investors see precious metals as a safe haven for their money regardless of the tensions impacting regions including Ukraine and the Middle East.
- Interest rates: As historically high rates are expected to begin trending downward soon, gold prices are poised to benefit, making it an even more attractive investment.
- Political impact: Voters are already casting their ballots for the next U.S. president. Regardless of whether Kamala Harris or Donald Trump win, analysts say increased deficits are likely and would only boost gold’s value further.
Predicting the future
Over time, gold has always increased in value. This year alone, it has added about 33% to its value to reach a recent high of $2,772 per ounce.
But with so much uncertainty in the world, it might be hard to determine if investing in gold is the right move for your financial future.
As Bank of America advised last month: “Gold looks to be the last ‘safe haven’ asset standing, incentivising traders including central banks to increase exposure.”