"Gold prices have surged over 45% in 2024, reaching multiple record peaks and heading toward their strongest annual performance in 45 years. Beyond purchases by central banks, the precious metal has gained momentum from the Federal Reserve's interest rate reductions, the global shift away from dollar dependence, and increased investment in gold ETFs. In addition, with the stock market seemingly printing new all-time highs every week, gold and the gold miners are seen as a solid hedge against a market meltdown"
"the world and central banks have been loading up on the commodity, is that it's not typically a tradable investment. Warren Buffett owns zero and has previously said it is an investment with "no utility." The case for gold and gold miners is compelling for two reasons. Firstly, gold can serve as a strategic hedge against inflation. Secondly, some top miners extract silver and other essential commodities for industrial applications."
Gold prices jumped over 45% in 2024, setting multiple records and approaching the best annual return in 45 years. Central-bank purchases, Federal Reserve interest-rate reductions, a move away from dollar dependence, and increased investment in gold ETFs boosted demand. Gold and gold miners are viewed as hedges against inflation and potential stock-market meltdowns after the extended equity run since 2022. Longstanding skepticism labeled some investors as "Gold Bugs," and critics argue gold lacks tradability or utility. Top miners also produce silver and other industrial metals. Screening of a gold-mining database identified attractive entry points, and SPDR Gold Shares holds physical bullion.
Read at 24/7 Wall St.
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