I'm Coy Wells for U.S. Money Reserve. Gold rallied to an all time high prices has garnered a lot of attention recently, but may be overshadowing the fact that gold's record growth is currently outpacing the stock market. This important detail has been covered to a lesser extent by a few media outlets.
On April 1st, 2024, Barron's published an article titled “Gold Hits an All Time High. It's beating the S&P 500.” In the article, Barron's noted that since the start of 2022, the price of gold rose 20%, while the S&P 500 stock market index only grew by 14%. The Wall Street Journal published a short article titled “Gold is Shining Brighter Than Stocks in 2024.” In their article, the journal noted that in 2024, the prices of gold increased 12%, while the S&P 500 only rose by 10%.
Analyst at the forex broker XM noted that strong demand for gold bullion on a number of fronts had powered gold's historic rise. Forces such as direct purchases from central banks, diversifying the reserves, strong retail demand from China, and expectations about the Federal Reserve rate policy have all affected the current increase in gold prices.
Gold has also benefited from its use as an inflation hedge, while stocks have been worn somewhat by inflation. These factors have prompted experts to forecast major gains for the precious metals in the near future. Analyst for Citibank and veteran strategist David Rosenberg is predicting the metal will soon reach 3000 an ounce.
It's easy to see the appeal of gold ownership for many portfolio holders. Gold also provides strong growth potential, allowing owners to reap the benefits of rising prices while also protecting their hard earned wealth from volatility in other markets.
To learn more about the benefits of owning physical gold at home or as part of your gold backed IRA, and to receive your free gold information kit, call U.S. Money Reserve and speak to one of our dedicated account executives today.
