Remember when your grandpa used to ramble about gold being “real money”? Well, turns out the old guy might’ve been onto something. Gold just smashed through $4,000 an ounce like it was made of paper, and honestly, it’s been the financial equivalent of watching your least athletic friend suddenly dunk on LeBron.
We’re talking $4,065 per ounce as of this week, which means gold is up a ridiculous 52% this year. To put that in perspective, it’s absolutely demolishing the S&P 500 (up a measly 15%), the Nasdaq (19%), and even Bitcoin (31%). Yeah, Bitcoin – the thing that was supposed to be “digital gold” – is getting schooled by actual gold. The irony is *chef’s kiss*.
This is gold’s best year since 1979, when it shot up 133% and everyone was dealing with disco and economic chaos. The difference? Back then, the stock market was tanking. Now it’s doing pretty well, which makes gold’s performance even weirder and more impressive.
So What’s Driving This Golden Madness?
It’s basically a perfect storm of “oh crap” factors. We’ve got economic uncertainty (shocking, I know), geopolitical drama that makes reality TV look boring, and inflation that’s making everyone nervous. Plus, the stock market is looking pretty overvalued right now – like that friend who keeps insisting their NFT collection is “totally going to moon.”
Smart money is hedging their bets, and apparently gold is the new black.
Goldman Sachs Just Moved the Goalposts
Here’s where it gets fun. Goldman Sachs originally said gold would hit $4,000… by 2026. Oops. Gold basically said “hold my beer” and blew past that target in less than a month. Now Goldman’s scrambling to update their forecast to $4,900 by end of 2026. That’s another 22% gain from here.
But wait, there’s more! Ed Yardeni from Yardeni Research is out here making predictions that sound like lottery numbers: $5,000 by end of 2026 and $10,000 by 2030. At this point, why not just say gold will be worth a gazillion dollars and call it a day?
The Real Talk
Alex Tsepaev from B2PRIME Group nailed it: when the world feels like it’s on fire, people buy gold. It’s not just about stability anymore – it’s become a legitimate growth story. Central banks from China to Poland are hoarding the stuff like it’s the last iPhone on Black Friday.
Plus, with central banks going all dovish and interest rates dropping, gold becomes more attractive. Lower rates = better for gold. It’s Finance 101, but apparently it took everyone by surprise.
The dollar’s also been weakening, which makes gold look even shinier by comparison. It’s like when your ex starts dating someone terrible – suddenly you look way better without changing anything.
Bottom line: Gold is having its main character moment, and analysts think the show’s just getting started. Whether you’re a believer or a skeptic, you’ve got to admit – this golden run has been pretty entertaining to watch.