Gold Outperforms S&P 500 with Five-Year Growth Surge

The Demand for Gold in 2024

Costco is selling up to $200 million worth of gold bars every month in the United States, indicating a high demand for gold. This precious metal is valued for its enduring nature, historical significance, and numerous applications in technology, such as computers and spacecraft.

Investors often turn to gold as a “safe haven asset” during times of global uncertainty and economic downturns. The demand for gold has surged in recent years due to persistent inflation and geopolitical tensions, resulting in an all-time high price of over $2,400 per ounce in 2024.

Gold’s Performance

Visual Capitalist’s Marcus Lu has compared the performance of gold with the S&P 500, revealing that gold has outpaced the stock market index over a five-year period. Gold has seen an impressive 81.65% climb during this time.

Costco and Central Banks Fueling Gold Demand

Costco’s significant sales of gold bars indicate a growing interest in gold among consumers. In contrast to the previous year’s sales of $100 million per quarter, the current monthly sales volumes are a testament to the heightened demand for gold.

It’s not just individual consumers purchasing gold; central banks worldwide are also accumulating large quantities of the precious metal to hedge against inflation. In 2022, central banks acquired 1,136 metric tons of gold, the highest level since 1950. This trend continued in 2023, with banks buying 1,037 metric tons.

Exploring More about Gold

If you’re intrigued by gold, Visual Capitalist offers additional content on various aspects of gold, such as global production by country and the countries with the largest gold reserves.