Nonetheless, investors have sought refuge in bullion amid US President Donald Trump’s expanding trade war, record US debt levels sparking concerns about the country’s fiscal health, and growing encroachment on the independence of the Federal Reserve. Investors have piled into gold-backed exchange-traded funds this year, with total holdings in September hitting their highest point in three years, according to data collected by Bloomberg.
For centuries, gold has been the go-to haven asset in times of political and economic uncertainty. Its status as a reliably high-value commodity that can be transported easily and sold anywhere offers a sense of safety when everything else is in turmoil.
Not everyone’s a fan. Famed investor Warren Buffett has called the precious metal a “sterile” asset, telling Berkshire Hathaway shareholders in a 2011 letter: “If you own one ounce of gold for an eternity, you will still own one ounce at its end.”
