Three reasons why gold has surged 20 per cent in last one year

Gold has been on the fast lane, with the precious metal growing 20 per cent in the last 12 months. Let's understand why that's the case. 1. Store of value Let's start with the most enduring reason for gold's popularity. Over multiple decades, the precious metal has been recognised as an excellent store of value. In other words, it usually shines whenever there is global uncertainty or fear in the financial markets, offering a safe haven for investors. So, in turbulent periods, which we are in at the moment due to the bloodshed in Russia-Ukraine and the Middle East, gold has become a beacon of stability. People start buying gold as its value has survived centuries. Heck, even the central banks of some major emerging markets have been stockpiling more and more of the precious metal in recent years. The invasion of Ukraine by Russia in 2022 really showed how important having gold reserves can be. When

This article was originally published on May 01, 2024.