Gold prices have surged, doubling to over $3,400/ounce since November 2022. Major financial institutions like UBS, RBC, Goldman Sachs, and JP Morgan are bullish on gold. Central banks are shifting towards gold due to dollar devaluation and economic uncertainty. Gold is now the top-performing asset class with annualized returns of 10.7% over 20 years.

The future of gold’s bull run depends on central bank purchases, economic uncertainty, interest rates, and the dollar. Historical data suggests that gold prices tend to revert to the mean, cautioning against buying at peak levels. Gold has a history of extreme volatility and can outperform or underperform stocks over extended periods.

Gold’s role as a portfolio diversifier remains strong despite its lack of cash generation. However, with gold trading near all-time highs, it’s wise to limit exposure to 5% of a portfolio. The current bull run may not last indefinitely, emphasizing the need for caution and diversification in investment strategies.

Read more at Morningstar: Can the Gold Rush Continue? Warning Signs for Investors