Gold spot prices have continued to hit new highs recently, and on the 19th, they broke through the $2,700 mark for the first time. Today, they reached a historic high of $2,722 per ounce, currently trading at $2,721.9 per ounce, a year-to-date increase of 31.94%.
Gold Mining Stocks Surge 70% This Year
Additionally, analyst Bob Loukas posted on the social media platform X that this year, gold mining stocks have risen more than gold, just like the surge after a bull market is confirmed:
This year, gold mining stocks have risen 70%, and they have finally started to outperform gold, which usually happens after a bull market is established. However, their stock prices are still below the 2020 highs.
Although there may be volatility in the future, they still have a lot of upside potential.
Reasons Behind the Recent Gold Price Surge
As for why gold prices have continued to soar this year, BlockTempo has summarized the following reasons:
- War Hedging: Since last October, there have been conflicts between Israel and organizations or countries such as Hamas, Iraq, and Lebanon in the Middle East. Additionally, the two-year Russia-Ukraine war has not yet ended, and with tensions high in multiple regions, the hedging value of gold has gradually increased.
- Global Interest Rate Cuts: The US Federal Reserve raised interest rates for the first time in 4 years in September, and many Eurasian countries also followed suit with rate cuts in September, but the market believes that the rate cuts are to address the impending recession in the US economy. As a result, many investors have started to allocate their assets to low-risk assets such as bonds and gold.
Furthermore, Citi's global head of commodities research, Max Layton, predicts that gold prices will reach $3,000 per ounce in the next 6 to 12 months, as gold ETFs and demand will be stimulated amid high uncertainty in the US and European economies. Additionally, Layton expects silver prices to rise to $35 per ounce in the next 3 months.
Can Bitcoin, the 'Digital Gold', Follow the Surge?
We know that the author of the bestselling book "Rich Dad, Poor Dad", Robert Kiyosaki, has long believed that a financial collapse is imminent and has repeatedly urged investors to allocate assets to gold, silver, and BIT. Therefore, BIT is often compared to precious metals.
Further Reading: Rich Dad: The Opportunity to Turn Your Life Around is Here, Buy More BTC... Bitcoin Spot ETF Net Inflows of $880 Million in Five Days
Currently, global risk aversion is high, and gold prices continue to rise, reaching new highs. As for the "digital gold" - BIT, which the Rich Dad also favors, it has the potential to replicate gold's record-breaking performance:
- First, BIT has not yet reached its March high, but its recent surge has also been remarkable, reaching $69,000 in the early hours of this morning.
- According to Sosovalue data, since October 11, BIT spot ETFs have had net inflows for 6 consecutive days, with net inflows exceeding $250 million per day, indicating that traditional financial institutions are gradually becoming optimistic about and purchasing BIT as an asset.
