“Gold fever” is hitting the world at, well, fever pitch. The price of the yellow metal climbed over $2,360 per ounce this past week—and has risen by more than 8 percent in just the past three months and over 16 percent year over year. Now, typically, people buy gold as a hedge against inflation and currency devaluation. A big driver of gold prices has been rising demand from central banks, but there are also other forces at work as well.
High Demand for Gold in the US as Confidence Falls
For instance, right now, in the United States, inflation persists despite high interest rates, so it’s no wonder why people want to buy gold as a hedge. The overflow of immigrants at our southern border, the widening political divide in the country, trillions of dollars of deficit spending, and an overall lack of confidence in the future have Americans feeling high levels of uncertainty and doubt.
James Gorrie
Author
James R. Gorrie is the author of “The China Crisis” (Wiley, 2013) and writes on his blog, TheBananaRepublican.com. He is based in Southern California.
