Gold is at a Fresh Record High: Is It Still Worth Buying?
Gold’s impressive performance has captured the attention of investors amidst significant shifts in U.S. tariff policies and a dramatic downturn in global stock markets. As the price of gold soars to new heights, the question arises: is it still a good time to invest in this precious metal?
Jan Skoyles, the U.K.-based head of marketing at precious-metals dealer GoldCore, asserts that now is not too late to enter the gold market. In a recent YouTube video, she stated, “Not by a long shot – you’re right on time.” The surge in gold prices indicates a complex interplay of economic factors rather than a signal for investors to shy away from purchasing. Gold futures recently settled at an all-time high of $3,244.60 an ounce, reflecting a year-to-date increase of over 20%. Notably, prices have reached record-high settlements 21 times as of April 2025.
The Economics Behind Gold’s Surge
As gold breaks the $3,000 per ounce barrier, Skoyles notes that this milestone is not just a number, but rather a “flare, a signal” of deeper issues at play in the economy. “When gold is surging, it doesn’t mean the economy is booming – it means the opposite,” she emphasized. This sentiment underlines the idea that rising gold prices can often be indicative of economic distress, as investors begin to question the stability and reliability of their currencies and markets.
Gold has demonstrated considerable resilience during recent market volatility. Following President Donald Trump’s controversial announcement of “liberation day” tariffs on April 2, panic set in across the stock markets, prompting some investors to liquidate gold holdings to cover losses elsewhere. However, historical patterns suggest gold typically stabilizes and serves as a haven amidst such volatility, as noted by Robert Minter, director of ETF investment strategy at Aberdeen Investments.
The Role of Gold in Turbulent Times
Amidst the turmoil surrounding government policies, conversations around the value of gold as a secure investment have intensified. Minter pointed out that gold is unique in being “the only currency that is not someone else’s debt.” As traditional fiat currencies waver under the fluctuations of governmental stability, the perception of gold as a reliable store of wealth has only been reinforced. This shift signifies that central banks, in protecting their reserves, may increasingly look towards gold rather than traditional currency, especially in light of tariffs earned from the recent administration’s unpredictability.
Investing Wisely in Gold
While gold carries a reputation for security, experts like Skoyles caution against viewing it as a vehicle for rapid wealth accumulation. “Gold won’t make you rich overnight, but it might stop you [from] becoming poor over time,” she remarked. Instead, investors are advised to view gold as an essential part of a diversified portfolio, serving as a type of financial ballast in uncertain times.
Asset management companies such as DWS suggest maintaining a diversified portfolio with about 5% to 10% exposure to alternative assets, like gold. Exchange-traded funds (ETFs) provide a cost-effective avenue for gaining exposure to physical gold without the hassle of storage solutions. For instance, the SPDR Gold Shares ETF (GLD) has already risen 23% year-to-date, showcasing gold’s resilience in tough equity market conditions.
The Implications of Inflation on Gold Performance
The immediate future also suggests that inflation may increase. With growing trade tensions and tariffs, gold’s role as a hedge against inflation is expected to bolster its demand further. A diversified investment strategy that includes gold could serve as a useful counterbalance to equity exposure, which may be more vulnerable to economic shocks.
The Velocity of Gold’s Ascent
Skoyles regards the speed of gold’s recent ascent as significant, suggesting this isn’t merely a typical rally but a major shift in investor sentiment. She draws parallels to previous milestones in gold’s price history, emphasizing that significant increases are often indicators of broader economic disruptions. Each leap, she observes, serves as a flashing warning light on “the global dashboard,” suggesting urgent action may be necessary for investors.
“If you think you’ve missed the boat at $3,000 an ounce, that’s like refusing to get on the motorway just because the traffic’s moving. If anything, the need to get there is more urgent than ever,” Skoyles warns. Rather than being viewed as an asset for apocalyptic scenarios, she argues that gold should be understood as a critical component for the world we’re currently navigating.
In conclusion, as gold continues to set new records, the time may indeed be ripe for investors to explore its value in their portfolios. Whether as a hedge against uncertainty or a stable store of wealth, gold reinforces its reputation as a fundamental asset during troubling times.
