Gold's Best Year Since the 1970s

As a contentious election looms around the corner, many major policy issues hang in the balance.

But amid the uncertainty, there's one thing that many Wall Street traders agree on: Gold is having a moment – and it's not just any moment.

Breaking price records almost weekly, gold is currently on track for its best performance in over 45 years. What began as a surge in demand from China and central banks has transformed into something bigger – a global gold-buying spree that shows no signs of slowing... 

Breaking Records and Making History

On Thursday, gold prices nearly breached $2,800 per ounce, pushing the year's gains above 33%.

To put this extraordinary performance in context, our senior analyst Alan Hibbard recently shared an eye-opening perspective: 2024 is shaping up to be one of the best years for gold in the past half-century.

Gold’s Annual Returns Since 1970 

Let that sink in. We’re witnessing history in the making. Only four times since 1970 has gold delivered stronger returns:

• 1979: +126.5%
• 1973: +73%
• 1974: +66.1%
• 1972: +48.8%

But here's what makes 2024 different: Gold is achieving these gains without the double-digit inflation of the 1970s.

This suggests there’s something bigger behind this gold rally.

Why Gold Now?

The stars are aligning for gold across multiple fronts: The U.S. national debt has surged past $34 trillion, global geopolitical tensions have reached their highest levels in decades, and the U.S. dollar's dominance in global reserves has weakened to just 59% – a low not seen since 1995.

But it's not just the fundamentals that are turning heads on Wall Street:

"Markets like gold in uncertainty, especially when it has to do with geopolitical issues," says Portfolio manager Patrick Fruzzetti of Rose Advisors in New York in a recent Bloomberg interview. "That's a reason why you'd want to own gold going into the election."

Paul Wong, market strategist at Sprott Asset Management, points to structural shifts: "Gold is now in a new bullish phase, driven by factors like central bank buying, rising U.S. debt and a potential peak in the U.S. dollar."

Even more emphatic, renowned precious metals expert Adrian Day says we are currently in the "most bullish environment for gold imaginable."

The numbers back up these expert opinions: World Gold Council data shows central banks purchased a record-breaking 483 tons of gold in the first half of 2024 alone – 5% above the previous record set just last year.

This unprecedented central bank buying, combined with surging global investor demand, suggests gold's rally has strong fundamental support that transcends next week's election outcome.

Looking Ahead: Where Does Gold Go Next?

While no one can predict the future with certainty, the momentum is undeniable. In his latest video analysis, Alan Hibbard maps out a compelling scenario for gold in 2025:

“If gold repeats next year what it did in 2024, we will hit $4,000 per ounce before the end of 2025.”

Want to learn more from Alan about gold's potential during this historic bull run? Click here to watch Alan’s full analysis.

Participating in Gold's Historic Rally

While central banks and institutions race to secure their gold positions, individual investors have a unique opportunity to participate in this historic bull market.

At GoldSilver.com, we believe in empowering you with knowledge first, followed by access to the finest investment-grade bullion available. Our storage program offers the same secure vault options used by institutional investors, while our direct delivery ensures you maintain complete control of your precious metals.

Whether you're new to precious metals or looking to expand your position, we're here to help when you're ready to act. 

Explore Our Collection of Gold and Silver Bullion

Until next week,

Brandon S.  
Editor
GoldSilver