As inflation persists, gold is seeing renewed interest from investors seeking a safe haven. This article explores the historical relationship between gold and inflation, examining whether gold can truly act as a substitute for cash during inflationary periods. It delves into the benefits of adding gold to your portfolio, highlighting its potential to stabilize and diversify investments during economic uncertainty.
As we head further into a new year, gold is experiencing renewed interest and a strong price, with its performance being driven, in part, by investors wary of persistent inflation. In December, the U.S. Consumer Price Index defied forecasts and rose to an annual inflation rate of 2.9%. Global conflicts and fears of a stagnating economy have also contributed to the recent uptick in the price of gold.However, many gold experts aren't surprised by gold's current performance.
As Pawan Jain, interim chair of finance at Virginia Commonwealth University, points out, gold's stock-to-flow ratio of 60 is historically high, meaning it would take about 60 years of current mining production to replace the existing gold supply. 'High stock-to-flow ratios often coincide with a 'scarcity premium,' meaning investors pay more for assets that are hard to increase in supply.
GOLD INFLATION INVESTING PORTFOLIO ECONOMIC UNCERTAINTY
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Stocks: A Potential Outperformance Opportunity in 2024This article discusses the potential for gold and gold stocks to outperform in 2024 amidst market uncertainty. It analyzes the performance of GLD and GDX, highlighting the underperformance of gold stocks compared to gold. The article suggests that a 'catch up' trade could be in play, with gold stocks closing the gap with stronger gold prices. It also identifies Kinross Gold Corp. (KGC) as a top performer within the gold space.
Read more »
Kids with Limb Differences Shine at 'Show Your Shine' Runway EventThe 5th annual 'Show Your Shine' event in Huntington, New York, celebrated limb difference and raised awareness and funds for children facing similar challenges globally.
Read more »
Gold Stocks Surge as Trump Tariff Uncertainty Spurs Hedge DemandGold stocks in COMEX-approved warehouses have seen a significant increase, driven by market participants seeking physical deliveries to mitigate the risk of import tariffs under the incoming US administration of Donald Trump. This uncertainty, particularly surrounding the technicalities of global gold trade and the exchange of futures for physical (EFP), has led to wider price spreads between New York and London gold markets and heightened volatility.
Read more »
Gold's Allure: A Hedge Against Uncertainty in a Shifting WorldGold's value has surged tenfold since 2000, attracting investors from all walks of life. Its enduring allure as a safe haven asset is amplified in times of global uncertainty. As geopolitical tensions rise and nations seek alternatives to the US dollar, gold is poised to shine even brighter.
Read more »
BCA upgrades gold to overweight to hedge fiscal crisis riskBCA upgrades gold to overweight to hedge fiscal crisis risk
Read more »
Gold sticks to modest gains above $2,700 amid renewed USD sellingGold price (XAU/USD) attracts some dip-buyers near the $2,689 region during the Asian session on Monday and for now, seems to have stalled its retracement slide from over a one-month top touched last week.
Read more »