Demand for gold surges after SVB’s collapse

The demand for physical gold has jumped as investors look to protect themselves from the fallout of SVB’s demise.

gold ingots on 100 dollar bills
(Image credit: © Getty Images)

The fall of Silicon Valley Bank and two other financial institutions in the US has reverberated through global markets. The recent action in the gold price shows that investors, spooked by the events across the Atlantic, have rushed to safety as they seek to protect themselves from the fallout.

The price of gold has jumped back above $1,900 per ounce in the past few days, leaving it trading close to its all-time high of $2,036/oz printed in July 2020 when the global economy was at the mercy of the coronavirus pandemic.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.