Gold Outperforms Stocks as Rate Cuts Send It Soaring
Gold has been shining brightly in 2024, outpacing even the stock market. In a recent article, CNN reported that gold has reached a 30% year-to-date gain, leaving the S&P 500’s 20% return in the dust.
Gold’s remarkable performance can be attributed to several key factors: the Federal Reserve’s recent interest rate cuts, ongoing geopolitical uncertainties, and increased central bank purchases of gold. Together, these elements have driven the price of gold to new heights.
According to CNN, more rate cuts are expected, and experts predict gold could reach $2,850 by 2025.
However, this pattern goes beyond the past year. Forbes reported that since 2000, gold has soared by 811%, significantly outpacing the S&P 500’s 517% return. This long-term trend reaffirms why gold continues to be a go-to asset for individuals looking for financial stability and wealth preservation.
So, what does this mean for Goldbacks?
One week ago, we posted about one Goldback reaching a $5.34 exchange rate. Today, they’re sitting at $5.49.
While traditional currencies are vulnerable to inflation, gold has proven its enduring strength, and by extension, so have Goldbacks. They continue to offer a stable alternative, giving you a way to spend and save in real, physical gold that appreciates over time. Simply put, Goldbacks are a financial tool built for today’s challenges and tomorrow’s opportunities.
Sources:
https://www.cnn.com/2024/09/25/investing/gold-silver-fed-rate-cuts/index.html
https://www.forbes.com/sites/dereksaul/2024/09/22/gold-keeps-hitting-new-record-highs-why-its-outperforming-stocks-as-rate-cut-provides-latest-boost/
