Gold is gaining renewed attention as an investment, especially with its 26% price increase in 2024, driven by central banks' growing demand and rising geopolitical tensions. While Wall Street often disdains gold, framing investors as 'gold bugs', its role as a strategic hedge against inflation and economic downturns is increasingly relevant. Analysts have been lowering earnings expectations due to macroeconomic pressures, indicating potential market instability. This environment may also present opportunities to invest in gold miners, especially those with dividend potential and additional valuable commodities.
There has always been a degree of scorn from Wall Street and investment professionals over the years for those who invested in gold. Yet, gold remains a significant financial asset.
The price of gold jumped 26% in 2024, primarily driven by skyrocketing demand from central banks and increased geopolitical tensions, providing a strong argument for gold's value.
The reality is, while fourth-quarter earnings were respectable, the forward guidance from many companies has analysts ratcheting down their earnings expectations, indicating potential economic downturn.
The case for gold is compelling: it serves as a hedge against inflation and allows investors to purchase shares of miners who extract necessary commodities.
Collection
[
|
...
]