Gold just keeps going up and up

Every day there seems to be a new high in the price of gold. So much so that there’s no point itemising the latest peak because it’s likely to be eclipsed tomorrow.

Gold has been quietly going up for the last couple of decades as fiat currency has gradually, or quickly, lost its value.

According to Hargreaves Lansdown, there were 271,500 Google searches for ‘gold’ in the first three months of the year – it’s been that popular! This has been the most popular quarter since Q4 2020 – on the back of a rally in the gold price. Gold prices hit a record high of $2,355 on 8 April 2024, as China continued buying for its reserves.

But in the last few weeks the rises have been startling, and they’re likely to continue.

Why is the gold price going up?

There has been a growing concern among investors that fiat currencies are literally not worth the paper they’re printed on. This has pushed more and more individuals and institutions towards gold, silver and other money metals.

Right now, we are expecting interest rates to come down at some point this year. That would encourage investors to look elsewhere for value and returns, although it doesn’t seem to have had the usual positive effect on stock markets that such movements usually do.

It’s also the case that, although interest rates are expected to come down in the USA, in the UK and Europe, the view is, more and more, that they won’t come down that much. This would keep a lot of money in Cash for a bit longer if it turns out to be true.

20-year gold price index in pounds sterling per ounce

Geopolitics and uncertainty

The current spike in gold seems to be more the outcome of an increasingly uncertain and worrying world, with sabre-waving from different, volatile parts of the globe forcing investors to fly to safer, more solid assets.

Will gold keep going up?

It looks like it. The current geo-political uncertainty is not going away and, as John Butler recently pointed out in his Fortune and Freedom column, we also have a global financial system that is pretty much broken beyond repair. It’s staggering along right now but it’s only a matter of time before something crashes, somewhere. He mentions the growing global debt bubble and the broken financial system as major concerns for investors. “Authorities rarely talk frankly about this” he says “but some recent comments from the Bank for International Settlements – the central bank of central banks – suggest they are growing more concerned.”

What should investors do?

According to John butler “the only suitable action is to protect their accumulated wealth in financial assets with a meaningful allocation to gold. In the near-term, however, silver may actually offer better prospects due to tight liquidity and a growing supply and demand mismatch.”

How do I invest in gold?

There are various ways to invest in gold, a we explain in this article.

How you do it is up to you and what you consider to be least risky.

Personally I think it’s a good idea to have a mx of real and digital gold (and silver).

You can buy gold bars and sovereigns from various outlets including the Royal Mint and some high street sellers. Or you can open an account with Tallymoney or with Bullionvault to buy digital gold (and, in the case of Tallymoney, potentially spend it too).

If you buy physical gold you will have to store it and insure it, but digital gold comes with a monthly fee for administering it, so you take your choice.

*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.