Time to buy gold? How investors’ favorite safe haven is doing in the tariff crisis

In times of economic collapse, you can rely on gold to maintain its value. This is the point of view of investors known as golden errors, and within a week when stocks collapsed and global markets lose their confidence in US Treasury bills, their ranks are likely to grow. But is the idea of ​​popular gold because the final safe haven is true in reality, and is its value steadfast during the current financial turmoil? The short answer is: Yes and yes.

In fact, a look at modern prices indicates that gold may hold better than ever because president Trump has withdrawn the global economy by imposing a high tariff on the sky. The brand of $ 3000 was crossed for the first time on March 15, and has risen to the top since then. Anyone who thinks about buying some, though, must understand exactly the extent of gold performance during the crisis, how you can get it, and why – like any investment – there are certain defects that go on.

Gold height amid the chaos of tariffs

When the S&P 500 decreased by 10.5 % early this month, as about $ 6.6 trillion were wiped from the market value, the price of gold also decreased. This may be a surprise, and for some, it will question the reputation of Gold as a safe haven. But the preliminary appearances are deceptive: the decline did not reflect the investors who lose their confidence in gold, but, instead, there is a temporary group that has seen that merchants sell feverish in all kinds of assets to cover margin calls in other locations.

“The brief answer is no, the safe haven of Gold has not weakened.” “We are likely to see a rise in gold prices as soon as the liquidation driven by the margin is completed, and then we expect to see a sharp increase in the demand for gold.” In fact, this style is exactly reflected in the graph below, compared to the performance of the S&P 500 and gold during the tariff crisis:

View this interactive plan on Fortune.com

Thomas added that this is a typical style, noting that during the previous extremist market events such as Covid in March 2020, gold decreased by up to 5 % before a rapid recovery. Peter Grant, Vice President of the ZANER Metals LLC, has expressed a similar feeling, noting that this style of dipping gold and then also occurs during more simple stock market disorders, as in the reaction to the bad job report.

The reputation of gold as a safe haven through the long -term crisis. It is partially derived from the attractiveness of global minerals – it is common in the United States, India and China and everywhere – as well as from its limited supplies. JP Morgan also indicated in a recent report: “In particular, about 200,000 tons of gold have been extracted throughout the history of mankind, which is enough to cover the football field at a depth of only one meter. Most of them are still with us today.”

In recent years, the gravity of gold has grown. While it took 12 years to increase the price of gold from $ 1,000 to 2000 dollars an ounce (a sign reached in 2020), it took another five years to break the 3000 dollar barrier. In its report, JP Morgan named Gold as a higher bullish choice for the third year in a row, and asked him “$ 4,000 in cards”.

While the latest disturbances in the market have pushed the last rise in gold, the price increase is also driven by geopolitical factors. Specifically, central banks around the world buy gold in an unprecedented clip as part of an attempt to reduce the share of US dollars in their reserves. In light of President Trump’s introductory war, and with global investors starting to ask whether the treasury bills are still qualified as a risk -free origin, gold will continue to embrace gold in the foreseeable future.

Buying gold – and the negative aspect of keeping it

Gold is searched after its scarcity, physical attractiveness and popularity. But there is one thing that gold does not offer: the return. Unlike most investments, which pay profits or another type of reward for keeping them, gold does not generate income; In fact, it will cost you to keep it.

For real golden errors, this lack of return is not a source of concern, because it appreciates the metal for its security and believes that the price will rise in the long term. Nevertheless, less committed investors may want to think twice to put a large part of their wealth in one of the assets that do not lead to income. Nevertheless, purchase of a small amount is likely to be a wise option for most people, both due to the relative stability of gold and the wider goal of a variety of wallets.

So what is the best way to buy it? This is primarily a personal choice about whether you prefer low cost and comfort, otherwise security and pleasure in maintaining physical minerals. If you prefer the first, the best option is to buy gold via ETF like SPDR Gold Shares (Ticker Gld) or Ishaares Gold Trust (Ticker Iau).

Buying arrows in ETF gold is simple as submitting an application through your online broker. Although you are still paying fees for ETF boxes, it is modest: GLD comes with a fee of 0.4 % while Iau receives 0.25 %. This is not the case with material gold.

If you prefer to keep gold in your hand, you will have to pay further consideration for the cost of mining and manufacturing. According to Grant, the mineral dealer, the installment you will pay over the instant market price will differ depending on what you buy – the Gold Eagle will cost you more than a simple tape – and the amount you require, but it says it can range from 2 % to 5 %. Fishermen may also consider deals in Costco, which sells gold and other precious metals and is said to be paid for about 2 %.

Just carrying gold includes its own costs: you will pay fees to safely charge gold to your home, or anywhere else safe, and you will likely need to pay something safe or similar to accepting it from theft.

Depending on the cost alone, buying gold as traded investment boxes is more logical. But if you are really worried about economic collapse (or simply like keeping material gold), it may be to buy it in a metal form is the best choice for you. Grant also notes, “material gold is the only form of gold that is not the responsibility of another person.”

This story was originally shown on Fortune.com

2025-04-10 20:00:00