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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
While the stock market is on fire, smart investors are quietly hoarding gold. What do they know that the rest of the market doesn’t? In this post, I'll dig into why gold is gaining traction as a hidden asset, explore the role of central banks, and look at how the Fed’s next moves could drive gold even higher
Gold’s 4-Year Performance vs the S&P 500
Over the past four years, gold has gained 40.6%, while the S&P 500 has climbed 65.9%. Although stocks are performing well, gold has gained a lot of ground recently. This gap between stocks and gold is narrowing as investors look for ways to hedge against rising uncertainty.
According to Goldman Sachs, gold’s story isn’t over yet. In fact, they forecast gold prices could hit $2,700 per ounce by early 2025. The reasons? Central bank demand, geopolitical risks, and the expectation of rate cuts from the Federal Reserve. With so much economic uncertainty on the horizon, gold is becoming the go-to asset for investors looking to manage their risk.
Central Banks Are Buying Gold Like Never Before
Another key driver behind gold’s rise? Central banks. In response to geopolitical instability and economic risks, central banks—especially in emerging markets—have been aggressively increasing their gold reserves.
Since 2017, banks have nearly tripled their gold purchases, buying up more than 1,000 tonnes in 2023 alone. Why? They’re hedging against potential financial sanctions, debt crises, and other global uncertainties. This massive demand is pushing gold prices higher.
Why Investors Are Paying Attention
The aggressive buying from central banks and the looming prospect of Fed rate cuts are two powerful forces behind gold’s current momentum. As interest rates decline, the opportunity cost of holding gold decreases, making it more attractive to investors.
Combine that with the global geopolitical mess we’re in, and gold is shaping up to be a reliable hedge for the future
A Few Key Takeaways:
- Gold’s Recent Growth: Over the past four years, gold has gained 40.6%, while the S&P 500 has risen 65.9%
- 2025 Forecast: Goldman Sachs predicts gold could hit $2,700 per ounce by early 2025
- Central Bank Purchases: Central banks, particularly in emerging markets, bought over 1,000 tonnes of gold in 2023
- Gold’s Growing Role: Geopolitical tensions and global uncertainty makes gold attractive to investors