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Gold prices surge to a new record: Why investors are buying in
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Interest in gold investing has grown substantially over the past few years, and this year has been particularly notable for the precious metal. Since early 2024, the price of gold has been climbing, and the uptick has been nothing short of remarkable, with gold shattering multiple price records so far this year.
The first significant spike came in early March, when gold prices surged to $2,160 per troy ounce, up 8% from the previous record of $2,135 in December 2023. By April, the price of gold had broken another record, and it did so again in May and August. Gold’s price then continued its upward trajectory, landing at yet another all-time high of $2,584.09 per ounce this week (September 16).
While this price performance would be impressive for any asset class — gold’s price is up 25% since January 1 while the average stock market return is about 10% per year — it’s particularly notable for gold. After all, gold is traditionally seen as a long-term, stable investment rather than a high-growth opportunity. But why are investors putting money into gold now? That’s what we will answer below.
Want to capitalize on gold’s price growth? Explore your top gold investing options here now.
Why investors are buying gold now
There are a few reasons why investors are flocking to gold right now, including:
To capitalize on future price growth
One reason investors are moving to gold currently is to capitalize on the potential for future price growth. While gold’s recent price trajectory is unusual, many analysts believe the upward trend in gold prices could persist for the near future, as there are a few factors driving it.
For starters, sustained demand from investors and institutional buyers is pushing the price higher, as gold remains a popular choice for those seeking to diversify their portfolios or protect their wealth. But beyond individual investors, central banks around the world are increasing their gold reserves and this demand is not expected to wane any time soon.
Gold’s uses are also expanding beyond traditional investment and jewelry markets. Technological advancements, particularly in electronics and renewable energy sectors, are helping to increase the demand for gold. As these industries grow, demand for gold in technological applications may rise, adding to upward pressure on its price.
The finite nature of gold also plays a key role. Gold is a limited resource, and mining output has been relatively stable in recent years. With limited new supply entering the market and continued demand growth, many investors expect prices to keep climbing. In fact, some experts believe that the price of gold could hit $3,000 per ounce soon.
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To protect against economic uncertainties
While inflation has cooled significantly compared to previous years, with the current inflation rate just slightly higher than the Fed’s 2% target rate, broader economic uncertainties continue to drive investors toward gold. The stock market has experienced some volatility recently, with downturns occurring over the last few months. And other economic factors, like a weaker-than-expected job outlook, has made other asset classes riskier in the eyes of many investors.
Ongoing geopolitical tensions have also made gold an attractive asset, as gold has historically been a safe haven during times of political instability or economic upheaval. So as these types of disruptions continue to impact global markets, gold’s role as a store of value tends to make it more appealing.
And while inflation may be slowing, the reality is that inflationary pressures could return in the future, and that is also driving renewed interest from investors. Because gold has long been viewed as an effective hedge against inflation, some investors are adding it to their portfolios as protection against future spikes in inflation.
For gold’s other benefits
Gold’s allure goes beyond its price growth and safe-haven status. Many investors turn to gold for its unique characteristics that differentiate it from other assets.
For one, gold has no counterparty risk. Unlike stocks or bonds, where the value is tied to the performance of a company or government, gold holds intrinsic value. Investors own a tangible asset, whether in the form of gold bullion, gold coins or ETFs tied to physical gold. This makes gold appealing in times when trust in financial institutions may be waning.
Another key benefit is liquidity. Gold is one of the most liquid assets in the world, meaning it can be easily bought and sold with minimal transaction costs. This is particularly attractive during market downturns when other assets may be harder to offload quickly.
Gold’s universal appeal also makes it a globally accepted asset. It’s not tied to any one country or economy. This makes it particularly valuable in a world where economic changes can occur quickly from region to region.
The bottom line
This year’s surge in gold prices has been remarkable, with new record highs reached every few months so far. And while some may view gold as a traditional, long-term investment, many investors are buying in now to capitalize on potential future price growth and safeguard their portfolios against economic uncertainties. It’s a strategy that could pay off, as the sustained demand, new technological uses and finite nature have made it a compelling choice for those looking to diversify their investments and grow their wealth.
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Justice Department opens civil rights investigation into Mississippi “Goon Squad” sheriff’s office
The Justice Department on Thursday announced it is opening a civil rights investigation into Rankin County, Mississippi, and the Rankin County Sheriff’s Department. A group of the agency’s former officers — who called themselves the “Goon Squad” — pleaded guilty last year to a series of charges for torturing two Black men.
“The public is now well aware of the heinous attack inflicted on two Black men by Rankin County deputies who called themselves the ‘Goon Squad,'” said Attorney General Merrick B. Garland in a statement. “Those officers have since been convicted and sentenced, but we are launching this civil pattern or practice investigation to examine serious allegations that the Rankin County Sheriff’s Department systematically violates people’s constitutional rights through excessive use of force; unlawful stops, searches, and arrests; and discriminatory policing.”
Garland said the allegations against the sheriff’s department include overusing tasers, using racial slurs, entering homes illegally and accusations deputies have “deployed dangerous, cruel tactics to assault people in their custody.”
The Justice Department said Rankin County officials have said they will cooperate with the investigation.
The Rankin County Sheriff’s Department made national headlines when five former deputies, along with one former Richland, Mississippi, police officer, were accused of torturing two Black men — Michael Corey Jenkins and Eddie Terrell Parker — in January of 2023.
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All six former officers pleaded guilty to a series of state and federal charges, admitting to breaking into a home without a warrant and torturing Jenkins and Parker for hours, going so far as to shoot one of them in the mouth. The men were also beaten, tased repeatedly and assaulted with a sex toy, prosecutors said.
The group of former officers had arrived at the Braxton, Mississippi, house after a White person called Rankin County Sheriff’s Deputy Brett McAlpin to complain about two Black men staying with a White woman. McAlpin told Christian Dedmon, another deputy, who then texted a group of White deputies internally known for using excessive force who called themselves the “Goon Squad,” according to prosecutors.
McAlpin, Dedmon and fellow former deputies Hunter Elward, Jeffrey Middleton and Daniel Opdyke — along with former Richland police officer Joshua Hartfield — were all sentenced to decades in prison on both state and federal charges earlier this year.
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Demi Moore was a troubled member of the “Brat Pack,” who overcame esteem issues and became the highest-paid actress in Hollywood, starring in such films as “Indecent Proposal,” “Charlie’s Angels” and “Striptease.” Her latest, “The Substance,” is about an aging TV star who finds a sinister potion that can give her a younger, more perfect version of herself, but at a horrifying price. Moore, now 61, talks with correspondent Tracy Smith about how she had suffered to comply with the entertainment industry’s toxic expectations of beauty for female actresses; and how today she is trying to focus on what really brings her joy.
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Former President Donald Trump, the biggest shareholder in Trump Media & Technology Group, and other insiders at the Truth Social owner, can finally sell their stakes in the business — just as shares of the stock hit a new low.
Until today, Trump and other insiders have been unable to sell their stakes, even as the shares enjoyed an initial surge after the company’s public offering in March, providing the company a valuation of more than $9.4 billion.
That’s because of a so-called lock-up period during which time Trump and other insiders have been unable to sell. Such agreements are common with initial stock sales and are designed to keep executives from immediately selling, thereby flooding the market with available shares and causing a stock to tumble.
Despite its early stock market gains, Trump Media — which trades under the ticker DJT, the same letters as Trump’s initials — has had a largely bumpy reception from Wall Street.
That path became even rockier on Thursday with DJT shares tumbling 92 cents, or 5.9%, to $14.70, representing a new low for the stock. The lock-up period for Trump and other insiders expired at the end of the trading day, or 4 p.m. Eastern time on September 19.
The slide, which comes even as the market rallied on optimism after the Federal Reserve’s jumbo rate cut, represents an 81% decline from its March high of $79.38.
The lock-up’s expiration now provides Trump and other insiders with a chance to cash out. In Trump’s case, his holdings are worth $1.7 billion — a sizable fortune, yet a far cry from its $6 billion value soon after the company went public.
That slump might not matter to Trump, however, as the former president recently vowed he has “absolutely no intention of selling” his almost 60% stake in the business. But other insiders might be tempted to sell now that the lock-up has ended, with those shareholders ranging from company executives to former “Apprentice” contestants who were earlier involved in the social media business.
Those insiders together own more than 20 million shares, according to the New York Times.
Trump Media & Technology Group didn’t immediately respond to a request for comment.
“I’m going to buy more”
Trump Media & Technology Group has attracted thousands of small investors who bought shares as a way to express support for the former president. On Thursday, as the stock sank to a new low, some took to Truth Social to urge the stock upward and profess their faith that DJT shares will see better days.
“I’m going to buy more,” one member of the DJT stock group on Truth Social wrote Thursday. “Prices are ridiculously low … even though I realize nothing is going to happen until Donald J. Trump is back in office.”
Shares of DJT have swung wildly based on news about Trump, as well as the perception of his standing in the presidential race against Vice President Kamala Harris. For instance, after Trump survived an assassination attempt in July, the stock soared 32% as investors recalculated his odds of winning in November.
Since Harris entered the race on July 21, replacing President Joe Biden, Trump Media shares have shed 58% of their value.
That has prompted some analysts to compare DJT to a meme stock, or companies that trade on social media buzz instead of traditional financial measures such as revenue growth and profitability.
Trump, meanwhile, said that he didn’t create Trump Media or Truth Social for the money.
“I did it because I really wanted to have a strong voice,” he said last week. “As long as my voice is on there, it’s going to always be good.”