The price of gold has plunged over the past week, but is still up more than 10% this year and has nearly doubled since the start of 2025.
Is it just a bubble? Or are there sound reasons for gold’s safe-haven appeal?
Clearly, speculation is part of the story. FOMO has amplified fear of geopolitical & financial turmoil.
But in a time of war and Western sanctions, geopolitical upheaval & loss of trust in the dollar, gold is also a valuable form of insurance that has stood the test of time.
And it can also offer a decent return. Ignoring the past year’s exuberance, gold appreciated by an average of 9% a year between Jan 2000 & Jan 2025.
The caveat: if gold becomes a more mainstream financial asset, it may lose some of its safe-haven properties.
Read my latest column for The Brussels Times