Risk aversion sweeping the globe: From retirees to hedge funds, all investors are rushing for gold!

Notice that, according to Dow Jones market data, gold is experiencing its strongest rally in decades, with a 40% increase so far this year, reaching a historic high of $3,682.20 per troy ounce on Monday. This surge marks the sharpest annual increase since 1979, when concerns about inflation sparked a global rush to buy precious metals. Unlike previous crises, the current demand is being driven by Washington's policy uncertainty, concerns about the US dollar, and geopolitical turmoil. President Trump's trade policy adjustments and repeated conflicts with the Federal Reserve have disrupted the market, while wars in places like Ukraine have intensified market volatility. Investors ranging from retirees to hedge funds are pouring in. "Bizarre seems to have become the new normal," said retired Nevada resident Kenneth Park, who shifted part of his investment portfolio to gold this spring. London vault operators also report a surge in wealthy clients seeking secure storage services, with IBV International Bullion Vault planning to double its insured storage capacity. Western buyers (including US investors in exchange-traded funds (ETFs)) have joined central banks and Chinese buyers in driving this rally. Gold ETF assets have grown by 43% since January, with record inflows in March and April. The Fed's hint at an upcoming rate cut has added momentum, making interest-free gold more appealing than bonds. Analysts warn that the current situation resembles the late 1970s, when high inflation and slowing growth (stagflation) pushed gold prices to record highs. "This is the perfect environment for gold," said Akash Doshi, head of gold strategy at Dow Investment Management. Even as Wall Street stocks continue to soar, many investors are hedging risks with gold as the US dollar weakens. From Costco customers buying gold bars to Americans melting down old jewelry, the buying frenzy shows no signs of slowing down. As one appraiser put it, "The value lies not in the craftsmanship, but in the material."