Another asset just crossed an all-time high. Gold has been rather flat for the last 4 years. From March 8th, 2020, to today, gold has returned 30.09%, while the S&P 500 and Nasdaq Composite have returned 72.38% and 87.57%, respectively.
Gold as an asset in super interesting because despite being used in technology hardware, it isn’t really a very useful resource. Nearly one-fifth of all gold mined is sold to central banks to be locked up in a vault. The rest is bought by jewelers, technology companies, aerospace companies, and investors.
Investors make up so much of the demand that when the ETF launched back in 2004, gold had its largest rally in my data set.
This rally in gold is rather impressive. Gold has been on a non-stop run since February 27th, rising around $150/ounce since then. This rally is likely driven by hopes for interest rate cuts, a weakening dollar, and geopolitical unrest.
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