The Daily Aus Why is the price of gold surging?
Jul 14, 2025
Gold is experiencing a record surge, hitting around $3,800 an ounce, a dramatic rise from five years ago. This shiny precious metal is a go-to refuge for investors during economic uncertainty, especially amid global tension. The discussion highlights the allure of gold against riskier assets and explores its impact on everything from jewelry prices to inflation. Challenges of investing in gold are also covered, stressing the need to understand potential risks and the absence of dividends. It's a fascinating look at why gold remains a valuable investment.
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Gold: A Safe Haven Investment
- Gold surges as a safe haven amid multiple global uncertainties like conflicts and trade tensions.
- Central banks buying large amounts of gold boost its price by reducing reliance on US dollars.
Why Gold Holds Value
- Gold is a safe asset because it doesn't depend on a company's performance or debt repayment.
- It is physically durable, rare, globally accepted, and historically valued, resisting inflation and volatility.
How People Buy Gold
- Jewelers buy gold from bullion dealers who hold physical gold bars in safes.
- Investors can buy gold bars but often trade via stocks or ETFs linked to gold prices.
