From Yahoo Finance: 2025-06-08 08:00:00

Gold has surged 25% this year, hitting an all-time high of $3,500 an ounce in April. The rally has raised questions about gold’s role as a portfolio insurance policy. Despite high valuations, central bank buying and investment demand have driven the rally.

World Gold Council data shows ETF purchases matching central bank buying. This surge in investment demand has boosted gold demand by 16% year-over-year. Analysts believe gold remains a safe haven investment amid market uncertainty and systemic moments.

VanEck’s Casanova believes gold still has room for further upside and remains a valuable insurance policy in portfolios. Despite caution from some experts about owning gold at high valuations, research shows gold can enhance risk-adjusted returns and offer diversification.

Valuations and volatility are concerns for some experts, with caution advised on adding gold to portfolios. Some believe that high inflation-adjusted gold prices historically lead to lower returns over the next decade. The role of gold as a hedge for stocks remains debated in the current market climate. Gold has outperformed bonds this year, but experts are wary of potential reversals. iSectors offers various gold ownership options, including strategic, inflation hedge, and quantitative models. Conners Wealth Management sees gold as a hedge against economic uncertainty and inflation, remaining bullish on gold investments despite recent pullbacks. The US dollar’s instability and inflation concerns support the case for owning gold.



Read more at Yahoo Finance: Does Gold Still Make Sense After Hitting All-Time Highs?