"The S&P 500 closed up 0.46% yesterday to hit a new record of 6,909.79. The index is now up 17.48% for the year. With only the quiet Christmas week left before the end of the year it's likely that investors will mark this down in their spreadsheets as a very good year.Unless, of course, they have a friend who bought gold at or before the beginning of 2025."
"The price of gold is up an astonishing 71% year-to-date, and is currently hovering around $4,514 per troy ounce. That friend is now laughing at you, the foolish stock investor, for wasting your money on trivia like the Magnificent Seven. In fact, that is only partially true, according to newish research from Claude Erb and Campbell Harvey of the Fuqua School of Business at Duke University."
"This chart shows the apparent effect on the price of gold following the introduction of gold ETFs. The chart shows the "real" price of gold, which discounts inflation from its price: The more recent introduction of tokenized gold stablecoins-crypto tokens backed by gold reserves and thus pegged to the price of gold, which can be "staked" or locked up as investments in other risk assets like bonds-is likely to push the price up further, they say."
The S&P 500 hit a record close of 6,909.79, up 0.46% and about 17.48% year-to-date. Gold has risen roughly 71% year-to-date and trades near $4,514 per troy ounce. Common explanations point to trade disruptions, geopolitical conflict, tech stock froth, Bitcoin weakness, and rising inflation driving safe-haven demand. Research finds that the 2004 introduction of gold ETFs permanently increased gold demand by making gold as easy to buy as stocks. North American gold ETFs hold about $200 billion, with roughly $175 billion held outside the U.S. Tokenized gold stablecoins that can be staked may push prices higher.
Read at Fortune
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