5 reasons why gold is a hot commodity

Published On Sep 26, 2024, 9:40 AM

Jim Grant discusses the rising prices of gold, which have reached an all-time high of $2,630 an ounce, and suggests that gold is becoming increasingly attractive due to geopolitical tensions, a recent Federal Reserve rate cut, and its properties as a safe-haven and inflation hedge. The article emphasizes gold's role in portfolio diversification and its scarcity, noting that central banks are increasing their gold purchases as an alternative to U.S. Treasuries. UBS has a price target of $2,700 per ounce by mid-2025, and experts recommend investing in gold as part of a broader strategy to mitigate market volatility.

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Stock Forecasts

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Gold's continued price rise is supported by factors such as the weak U.S. dollar following rate cuts, geopolitical uncertainties, and ongoing inflation concerns. As such, investing in gold-related assets is likely to perform well in the current economic climate.

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Gold mining companies may see increased interest as a secondary opportunity due to rising gold prices, which could boost their revenues and stock prices. Therefore, stocks of gold miners could also be a beneficial investment during this 'golden age' for gold.

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5 reasons why gold is a hot commodity

Sep 26, 2024, 9:40 AM

Gold remains a sought-after portfolio investment to help mitigate losses and remain a potential long-term source of return while fiat currencies and other materials may struggle.

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