The world market price of gold has risen by over 50 percent just this year and 100 percent in two years. And this week, a new historic record was set – for the first time over $4,000 per ounce (31.1 grams).
The gold rally is drawing in more and more small investors, according to statistics from Nordnet. The number of customers who traded in listed gold funds increased by 55 percent in September compared to the previous month, writes Frida Bratt in an email to TT. And the transaction volume increased by 62 percent while the number of transactions rose by 46 percent.
Continued interest
"Just during the first trading days in October, we see that the high interest continues. Already now, we see that the number of customers who have traded in October is at the same levels as during a whole 'normal' month earlier this year," writes Frida Bratt.
An unusually steep decline for the dollar – which in mid-September was at its weakest level against other currencies in three years – and investors who want to secure values in turbulent times with trade wars and geopolitical unrest contribute to the development.
Other factors that have been linked to increased demand for gold in recent times have been concerns about the US budget problems, increased expectations of interest rate cuts from the US central bank Federal Reserve, and the shutdown of large parts of the US federal government.
"No high time to buy gold"
Additionally, factors such as many central banks – not least the Chinese – investing heavily in building up a larger gold reserve to reduce dependence on the US dollar can be added.
It's no high time to buy gold. But you certainly have fun if you sell, says Stephen Herdemian, who runs a gold and jewelry business on Manhattan in New York, to the news agency Bloomberg.
Many heavy players see continued price increases ahead. The investment bank Goldman Sachs raised the target price for gold for next year to $4,900 per ounce on Friday. And Frida Bratt notes that it is now being speculated when the next milestone will be reached: $5,000 per ounce.
"As always when an asset has gone incredibly well for a while, you need to think about whether the driving forces will remain in the future, but also be prepared for any setbacks," she writes.
Joakim Goksör/TT
Fact: Gold price usually rises in times of crisis
TT
The gold price noted a new historic high on Wednesday afternoon at almost $4,058 per ounce and has since been hovering marginally below this level.
Gold – a physical commodity that is usually easy to sell even in times of crisis – usually increases in value when the market is stressed.
The gold price exceeded $1,000 per ounce when the mortgage crisis began to hit banks in the US in the spring of 2008 and $2,000 per ounce during the pandemic. The level of $3,000 was passed in the spring, when the Trump administration's tariffs shook the market.
