Gold has reached an unprecedented peak, exceeding the values observed during the Covid-19 pandemic and the start of Russia 'full-blown invasion of Ukraine.'
What triggered it? Not a combination of elements, as commonly thought, but rather an individual – Donald Trump – and his full-blown trade war that has ended 'our familiar world' .
A product of this 21st-century gold rush is TikTok , that has racked up millions of views, of a man casually unloading a gold bar he purchased inCostco to sell.
'Last year, I purchased this one-ounce (28 grams) gold bar for $2,359 (£1,805) at Costco,' explains video creator Humphrey Yang. 'Now, I'm planning to sell it...'
In the end, he successfully sells it for $2,955 (£2,258), making a hefty profit of $596 (£450).
It is an an instance of the current market situation As the valuable metal exceeded £2,442 per ounce on Friday morning – reaching its peak value yet.
This surge has sparked conversations on Reddit’s r/investing board, with individuals discussing whether the upturn in gold prices is truly enduring.
'Could this be the beginning of a bigger pattern?' 'Are there other types of alternative investments available?' 'What developments can we expect over the coming months?' These are among the queries that users are eagerly seeking answers for.
The shift towards gold appears 'well underway.'
Richard Hunter, who leads the markets division at Interactive Investor, told Diwida > The transition towards gold is already well under way.
'The increase in popularity is already underway. The price of gold has risen by approximately 21% this year alone, consistently reaching new record highs,' he stated.
The unusual aspect this time around is the impact of an individual, specifically the President of the United States.
Hunter mentioned, "A multitude of elements come into play; however, broadly speaking, market crises typically result from an accumulation of problems. In this instance, somewhat unusually, it primarily stems from the actions of a single individual."
'The "tariff trauma" we are witnessing is intensifying every day and it is sparking a backlash against the United States.'
That ambiguity has sparked renewed interest in conventional 'safe havens' such as gold.
'Investors have been looking for safe havens where they believe they can weather the storm,' Hunter clarified.
'In the currency market, we've observed notable strength in the Swiss franc and Japanese yen. Furthermore, gold could be considered the quintessential safe-haven asset.'
'As we talked about earlier, there has indeed been a significant and substantial amount of capital invested in gold.'
'High likelihood' of fluctuation in the coming 90 days
Regarding future developments, Hunter emphasized that he can 'nearly assure' volatility over the coming three months following Trump’s announcement of a 90-day hiatus on tariffs, excluding those imposed on China.
As others around the globe take time to renegotiate their deals, China—the second-largest economy—will see its tariffs rise to 125%, up from 104%.
Following the announcement of additional tariffs against the US earlier on Wednesday, this development took place.
Hunter remarked on this progression: 'With the globe's two biggest economic powerhouses in conflict, it exposes vulnerabilities within the system. And that is precisely what we are witnessing.'
UK consumers rush to purchase gold
Not only are investors shifting towards 'safe haven' gold, but British consumers are also making similar moves.
Dan Rennie, who directs the jewellery company Rennie & Co in London, stated Diwida > that the demand for gold jewelry has increased even with the rise in prices.
'Paradoxically, as the cost of gold increases, our sales have gone up, particularly for wedding bands.'
'In the past ten to twenty years, platinum was prevalent. However, over the last year, we're clearly noticing a move back towards 18-karat yellow gold.'
'Be it a fashion fad or the allure of exclusiveness, people get attracted to it.'
For jewellery brands such as Rennie & Co, the rising cost of gold is getting increasingly difficult to overlook.
Rennie mentioned that over the last year, he has been forced to increase prices between three to four occasions, solely attributed to fluctuations in the price of gold rather than expenses related to labor or otherwise.
'We last made adjustments perhaps a month or two back, and even now we're beginning to lag behind once more. Therefore, I'm certain that at some stage, we'll have to revisit this.'
Gold has historically experienced significant increases during periods of crisis, as people rush to purchase it amid declining confidence in institutions.
Following the events of September 11th and the 2008 economic downturn, prices surged significantly. They reached new peak levels once more during the pandemic period.
Contact our news team by sending an email to webnews@Diwida >.co.uk .
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