The future looks golden

Looking at trends in White House décor, it’s easy to conclude the future of gold is bright. But investors see something different in the White House.

“Gold futures traded in New York have soared almost 71% this year, on pace for their best annual gain in 46 years. The last time gold had such a strong year, Jimmy Carter was president, a crisis was unfolding in the Middle East, inflation was soaring and the United States was in the midst of an energy crisis.

“Today, tariffs are distorting international trade, conflict is raging with Russia’s war on Ukraine, there have been flare-ups between Israel and Iran and the US is seizing oil tankers off the coast of Venezuela. In times of uncertainty, investors turn to safe havens like gold.”

I would have added Chinese saber-rattling over Taiwan.

Of course, this is why gold, silver and platinum are called fear metals.

“Gold is considered a resilient investment, with investors expecting the yellow metal will retain its value in crisis, if inflation surges, or if currencies drop in value.

“Uncertainty remains a defining feature of the global economy,” said Joe Cavatoni, senior market strategist at the World Gold Council. “In this environment, gold has become increasingly appealing as a strategic diversifier and a source of stability.”

The market isn’t expressing confidence in Trump’s plan to make America great again.

 

https://finance.yahoo.com/news/gold-set-best-since-jimmy-214854728.html

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