Gold is weird. You can’t really do much with it, and it’s not the kind of commodity that’s top-of-mind for many industries. But it’s shiny! And people have dug shiny stuff for centuries. (The World Gold Council, in its Gold Demand Trends report for 2023, noted that jewelry kept its spot as a leading destination for all the Au circulating the globe.) Because of that glowing history, and the monetary value that has accrued over the years to things that are desirably florescent, gold has come to serve as a sort of last-resort investment the world over. Fears about the strength and sovereignty of your country’s currency? Gold. Having a hard time getting rich using your country’s financial system? Gold. Facebook ads making a convincing case for a spot in your retirement portfolio? Gold.
Gold prices are coasting on fear
Because of this quixotic mix of interests, gold is riding a wave of global uncertainty to record highs. The precious metal hit $2,165 a troy ounce in Friday (Mar. 8) trading, which would make for its highest close ever if stays at that level for the rest of the day.
It makes sense. There’s a lot going on! There’s Russia’s invasion of Ukraine. There’s Israel’s invasion of the Gaza strip. The U.K. and Japan are in recessions, and China’s economy isn’t looking too hot, either. And in the U.S., some people are worried that inflation isn’t as done-for as the Federal Reserve would like to see before it cuts interest rates. The adage isn’t quite true: Scared money actually makes a lot of money if it’s hiding out in the right spot.