“Everything’s glittering except for gold”, writes Mike Bird in The Wall Street Journal. You’d think these would be good times for gold. Commodities are roaring and central bankers seem keen to stoke inflation. Yet the yellow metal is being left behind. Trading at around $1,810/oz (£1,280/oz) this week gold is still more than 10% short of its early August highs. Even silver has been attracting more interest of late thanks to Reddit traders.
The idea that the surge in bitcoin, dubbed “digital gold” by some, is overshadowing the real thing has become a market commonplace, says Joe Weisenthal on Bloomberg. But it isn’t true. Bitcoin is really a “risk-on” asset that is more comparable with a stock like Tesla. Gold, by contrast, is a traditional safe haven strongly influenced by real interest rates (ie, interest rates adjusted for inflation). The metal’s main drawback as an asset is that it pays no interest, so when real interest rates rise – as they have done so far this year – investors tend to sell gold to buy up other assets.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Thousands of estates are sitting unclaimed in the UK – is your family name on the list?More than 5,700 unclaimed estates are on a government list waiting to be found by living relatives. We take a look at the list, and explain how to make a claim
-
420,000 more pensioners to be dragged into paying income tax – how does tax on the state pension work?Hundreds of thousands more pensioners will need to pay tax on their pension income at the end of this tax year, new HMRC data shows. We look at how taxation on the state pension works.
-
The British railway industry is in rude health – here's why investors should jump aboardThe railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoilFrom booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
The costly myth of “sell in May”Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Who’s driving Tesla?As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
Gold’s allure and why you should never 'pay a premium for graded coins'Opinion It is easy to become distracted by the beauty of gold, but remember why you buy it, says Dominic Frisby
-
Investment opportunities in the world of Coca-ColaThere is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
-
Streaming services are the new magic money tree for investors – but for how long?Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
-
'Pension funds shouldn't be pushed into private equity sector'Opinion The private-equity party is over, so don't push pension funds into the sector, says Merryn Somerset Webb.
