From CNBC: 2024-04-01 15:47:39

Gold prices have hit an all-time high, with an ounce currently costing over $2,250. Market watchers believe the economic scenario favors gold over stocks. Despite the bullish outlook, experts advise gold plays a different role in a portfolio. Factors like inflation, store of value, and risk aversion contribute to gold’s appeal.

The recent uptrend in gold is unique, as markets have seen a surge in various assets. A weakening U.S. dollar and falling bond rates have further boosted gold prices. With the Federal Reserve projected to cut interest rates, the outlook for gold remains positive. Investors are bullish on gold due to lower opportunity costs.

While owning gold can provide peace of mind during market declines, it does not produce any income. Billionaire investor Warren Buffett prefers assets with growth potential and compounding returns over time. Gold’s historical performance, mixed results during high inflation years, and limited utility make it a unique but volatile asset in a diversified portfolio.

To add gold exposure to a portfolio, investors can consider buying an ETF that tracks gold prices. This allows tracking gold’s performance relative to other assets without the need to physically own gold. Ultimately, the decision to invest in gold should align with an investor’s overall financial goals and risk tolerance.



Read more at CNBC: Gold prices hit an all-time high—what to know before investing