The Dirty Gold Rush | Vanessa Ogle
Gold just ended a banner year. Its price rose 27 percent in 2024, closing at $2,617 per ounce. Only the Nasdaq Composite index, fueled by reliably strong performances from the so-called Magnificent Seven tech giants, did better, at 31 percent. (The S&P 500 improved 25 percent.) This was gold’s best showing since 2010, when prices increased 29 percent, though over the last twenty-five years gains have been nearly unrelenting. According to analysts at JPMorgan, Goldman Sachs, and Citigroup, the rally won’t end here. They project gold to reach a historic $3,000 per troy ounce in 2025. All this has baffled market observers. Unlike other investments, gold does not yield interest but rather only accrues price-related gains. This is why investors hold the metal when other choices stand to deliver little profit, like in a low-interest environment. But rates have been anything but low in recent years. So what is driving these increases? Part of the answer is that central banks across the world have been on a buying spree. According to The Economist, gold now comprises 11 percent …