Gold has risen dramatically in 2024 due to global turmoil, inflation concerns, and unprecedented demand by central banks. Investors find solace in gold as economic uncertainty rocks the world.
Why Gold is Surging in 2024
These gold prices were fanned by global tensions and economic challenges such as inflation and the devaluation of currencies. In one such report by LiveMint, “Geopolitical tensions and economic crises have turned gold into an appealing asset and have hence pushed the price upwards”. For these reasons, demand for gold has gone up astronomically, forcing its price upwards to new heights not witnessed since the peak of the pandemic in 2020.
J.P. Morgan also projects further gains in gold prices, saying that “gold remains a robust hedge against both inflation and currency depreciation”. This view is supported by other financial companies, making gold a must-have in any diversified portfolio. Needless to say, demand for gold has further been boosted by central banks’ hoarding of the metal worldwide. According to recent reports from the World Gold Council, it saw record-breaking demand in the second quarter of 2024.
Why Gold Should Continue to Go Up
- Currency Hedge: With the rise in inflation in most major economies, gold serves as a hedge for their currencies. As the local currency weakens, this yellow metal appreciates; hence, it is an important asset to help preserve one’s wealth.
- Demand of Central Banks: In fact, they have been buying much larger quantities of gold, which adds to the increase in price. According to the World Gold Council, “central banks expect demand for gold to remain high, especially in uncertain economic times”.
- Market Volatility: Whenever the markets go into a turmoil, there are the gold investments, and it has also been the case in 2024. The unabated political and economic turmoil persisted, making gold an assured source of value. With increased numbers of countries experiencing economic instability, this demand will increase even further.
Return and Investment Potential of Gold
Between 2020 and 2024, gold had been one of the top performers, revealing its solidity. It has emerged as a favorite asset for both individual and institutional investors amidst global turbulence. According to analysts at JPMorgan, “the rise in gold prices outpaces other commodities, making it one of the top-performing assets” .
Why Invest in Gold Now?
It is, therefore, a good investment point with gold upward moving, driven by a combination of inflation, global instability, and central banks’ demand. Adding gold to your portfolio is not only a form of preservation but also guarantees future financial freedom, as it normally fares well during periods of uncertainty and continues to promise a bright outlook for the future.
As such, indications are that it will grow in price until 2024, so this may be a good time to make a move. Lock in your financial future and protect against uncertainty with an offshore gold investment.
