The recent surge in gold prices has sparked a debate among investors about the precious metal’s role in their portfolios. The rally, attributed to global geopolitical tensions, has led to a record-breaking price for gold, raising questions about its long-term value.
What Happened: The price of gold has reached an all-time high, with the April gold contract climbing to $2,126.30 per ounce, the highest level since its inception in 1974, reported CNBC.
This surge is largely due to global unrest, including the ongoing conflicts in Ukraine and Gaza, the upcoming U.S. presidential election, and uncertainties surrounding interest rates and inflation.
Experts are predicting that the rally will continue, with some forecasting a rise to $2,300 or more over the next 12 to 16 months.
Despite the potential for further gains, investors are advised to exercise caution. William Bernstein, author of “The Four Pillars of Investing,” said "You buy gold and hope it doesn't go up," indicating its role as a hedge against economic instability.
"When things get volatile, [investors] believe their money will be better positioned there," said Doug Boneparth, a certified financial planner and the founder and president of Bone Fide Wealth in New York, according to the report.
An investment of $10,000 in the S&P 500 ...