WSJ Your Money Briefing cover image

WSJ Your Money Briefing

Volatile Markets Are Creating a New Generation of Gold Bugs

Apr 4, 2025
As market volatility rises, many investors are flocking to gold as a safe haven. The discussion highlights the increasing interest in gold ETFs and profiles a range of new 'gold bugs' seeking financial security. Experts share methods for investing in gold and its historical reliability during tough times. However, caution is advised against heavy investment, with a focus on long-term strategies instead. This trend reflects a shift in how people are navigating uncertain economic landscapes while still aiming for stability.
10:32

Podcast summary created with Snipd AI

Quick takeaways

  • Investors are turning to gold as a safe haven amidst market volatility, driven by significant inflows into gold ETFs since February.
  • While gold can offer stability, it lacks regular returns like dividends, prompting financial advisors to caution against emotional investing.

Deep dives

Investors Shift Towards Gold Amid Market Volatility

A new wave of investors is turning to gold as a safe haven amidst the market volatility exacerbated by President Trump's economic policies. This trend has led to significant inflows into gold exchange-traded funds (ETFs), with a reported net investment of $11.4 billion since February, marking the highest monthly inflows since the pandemic's peak in July 2020. The current market turmoil, particularly related to Trump's trade war announcements, has prompted both novice and seasoned investors to seek stability in gold. This behavior is reminiscent of past financial crises, where uncertainty drove investors towards tangible assets like gold to safeguard their wealth.

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