Why have gold prices recently surged to all-time highs? (Video)

The surge in gold prices has been remarkable this year, with the buying price of gold futures hitting multiple record highs, showing an increase of over 14% in value since the beginning of the year. Campbell Harvey, a finance professor at Duke University, breaks down the reasons behind this unprecedented rise in gold prices in a conversation with CBS News.

What’s Driving the Surge in Gold Prices?

Gold has long been considered a safe-haven asset, particularly during times of economic uncertainty and market volatility. Due to the ongoing geopolitical tensions, inflation concerns, and fluctuating stock markets, investors are turning to gold as a hedge against financial turmoil. The unprecedented global events and economic conditions in recent times have fueled the demand for gold, driving its prices to record highs.

The Appeal of Gold as an Investment

Gold’s intrinsic value, limited supply, and historical reputation as a store of wealth have made it an attractive investment option for many. In times of crisis, gold tends to retain its value or even increase, making it a popular choice for diversifying investment portfolios. Additionally, the uncertainty surrounding the future trajectory of the economy and the impact of various geopolitical events have further enhanced gold’s appeal as a safe investment vehicle.

The Role of Speculation and Demand

Speculation and investor sentiment also play a significant role in driving the price of gold. As more investors flock to gold as a perceived safe asset, the increased demand can further push prices upwards. The current environment of low interest rates and economic uncertainty has heightened the speculative interest in gold, contributing to its recent surge.

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