Tue, 13 May 2025

Tue, 13 May 2025 Gold is booming – but how safe is it for investors, really?

Trade wars and volatile markets have contributed to a gold rush, but investors shouldn't put all their eggs in this one basket, warn experts
Gold Price Surge: The price of gold has risen significantly, with experts predicting it could reach $4,000 per ounce by mid-2026. Forecasts and Opinions:
* Daan Struyven (Morningstar): Expects the price to continue rising due to geopolitical uncertainty and central banks' desire for safer reserve holdings.
* Jon Mills (Morningstar): Predicts a significant drop in prices, citing increased mining production and recycled gold entering the market.
* Russ Mould: Believes there will be a pause in the upwards trend but thinks interest rates being slashed could lead to higher prices in the long run.
* Simon French (Panmure Liberum): Thinks the peak may have been reached, warning that those buying in now might be disappointed. Risks and Concerns: Some analysts are concerned about a market bubble forming and predict a correction. They also warn investors against putting all their eggs in one basket. Expert Insights:
* Daan Struyven: Thinks hedge funds could take money out of gold if there's a Ukraine peace deal or trade de-escalation, leading to temporary dips.
* Susannah Streeter (Hargreaves Lansdown): Warns against short-term speculating and advises investors to diversify their portfolios. Related Topics: The article also touches on the US trade war with South Africa and the use of tariffs as a key part of Donald Trump's political vision.
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