Current:Home > ScamsThe new global gold rush -PureWealth Academy
The new global gold rush
View
Date:2025-04-26 00:49:43
2022 was a rough year for investors: Between inflation, falling stock prices, and the crypto crash, it was hard to find a safe haven.
All of that economic turmoil had a lot of investors looking at one of the most ancient places to store wealth: gold.
For decades, investing in gold has been seen as a very old school investment, for the maverick, perhaps slightly anti-establishment investor.
But last year, it seemed everyone wanted in. Global demand for gold jumped nearly 20% to a decade high.
The New Gold Investor
One of those buyers was Julia Grugen, 20, a finance major at Temple University. A few months ago, she made one of her first big investments ever. In gold.
"I went in to the coin store and it was all men," she recalls with a laugh. Grugan quickly realized she was not the typical gold customer. "I was a little timid and I had barrettes in my hair."
But Grugan was determined. She had been studying economics and finance and she wasn't interested in the investments her friends were excited about, like NFTs and cryptocurrency.
"I am that old school girl," she says. "And for gold specifically, I definitely think of it as a value store more than an investment."
Investors all over the world have been looking for a value store: a safe haven from inflation, geopolitical problems and other things that can erode the value of a country's money.
So, barrettes and all, Grugan marched up to the counter at the coin store and placed her order "I said, 'I want a 10 gram bar.'" The 10 grams of gold cost around $625.
There's Gold in Them Thar Portfolios
Millions of Americans have been doing the same. Stefan Gleason is the president of Money Metals Exchange, one of the largest gold and silver dealers in the country. Gleason says ever since prices started rising in early lockdown, his business has through the roof.
"We've seen five to ten times more order volume," he says. Right now, his team works six days a week, packing up and shipping out around 2,000 boxes of gold bars, silver bars, and coins every day.
Gleason says customers tell him the last few years have shaken their faith in the US dollar, stocks and cryptocurency. But they trust gold.
Sound Money
After all, gold is one of the oldest investments out there. A lot of our language around money comes from gold. Like sound money, which refers to an ancient practice people used to test the purity of gold.
Of course these days, Money Metals Exchange uses high tech equipment to test the purity of their gold.
And there's a lot of be tested. The company is expanding quickly: building a 40,000 square foot headquarters in Eagle, Idaho.
Mike Gleason, Stefan's brother, is the director of Money Metals Exchange. He is overseeing the construction. "Right now, we're leveling the ground underneath the vaults," he explains. "We're really building for the future here."
Countries Are Buying Up Gold
The Gleasons are betting the future is golden. After all, countries like Turkey, China, Russia and Poland are reportedly buying up huge amounts of gold. They're also worried about inflation and geopolitical conflict.
Gold doesn't have a great track record as an investment: Gold right now is worth roughly the same price it was 12 years ago. Almost any decent stock would have been a more profitable bet.
But that hasn't deterred true believers like 20-year-old Julia Grugan. She did get her gold in the end: a little bar about the size of a postage stamp. She likes to take it out and just look at it sometimes.
Gold has a lot of cultural weight
"There's so much cultural weight that comes with gold," she says. "You feel, you feel a little bougie, you feel special."
Grugan says her grandfather, a schoolteacher, invested in stocks and gold and was able to retire very comfortably. In fact, one of the first things she did after she got her gold piece was text her grandma:
"I said, 'Please tell Poppy that I just bought my first 10 grams of gold.' And she said, 'Poppy says, 'WOW. Awesome.'"
veryGood! (39191)
Related
- The 401(k) millionaires club keeps growing. We'll tell you how to join.
- Military board substantiates misconduct but declines to fire Marine who adopted Afghan orphan
- New York Jets fire coach Robert Saleh after 2-3 start to season
- New York Jets fire coach Robert Saleh after 2-3 start to season
- Meet first time Grammy nominee Charley Crockett
- Election conspiracy theories fueled a push to hand-count votes, but doing so is risky and slow
- The Deepest Discounts From Amazon's October Prime Day 2024 - Beauty, Fashion, Tech & More up to 85% Off
- West Virginia lawmakers OK bills on income tax cut, child care tax credit
- Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
- Proof Taylor Swift Is a Member of Travis Kelce's Squad With His Friends
Ranking
- Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
- Jets' head coach candidates after Robert Saleh firing: Bill Belichick or first-time hire?
- Milton’s storm surge is a threat that could be devastating far beyond the Tampa Bay region
- TikToker Taylor Rousseau Grigg Shared Heartbreaking Birthday Message One Month Before Her Death
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- 'Avoid spreading false information,' FEMA warns, says agency is 'prepared to respond'
- Keith Urban Reacts to His and Nicole Kidman’s Daughter Sunday Making Runway Debut at Paris Fashion Week
- Who can vote in US elections, and what steps must you take to do so?
Recommendation
Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
Who can vote in US elections, and what steps must you take to do so?
The most popular 2024 Halloween costumes for adults, kids and pets, according to Google
TikTok Influencer Stuck on Disney Cruise During Hurricane Milton
Behind on your annual reading goal? Books under 200 pages to read before 2024 ends
Ryan Garcia passes on rehab, talks about what he's done instead
As FEMA prepares for Hurricane Milton, it battles rumors surrounding Helene recovery
Love Is Blind's Leo and Brittany Reveal Reason They Called Off Engagement