Gold prices are destructive record highs, but it is still a risky bet – “they do not send gold to buy the pizza of their domino”

• Gold is traditionally regarded as an ancient hedge Against inflation and market volatility, and the price of the precious metal has increased in the middle of the on-and-off-and-off threat of tariffs by President Donald Trump. Finding liquidity can still be difficult, and the risks are particularly high for smaller investors.

It turns out that tariffs are good news for gold bugs. When the uncertainty of trading policy and the recession feared the rattle markets, the increasing demand for Safe-Haven assets helped to increase the spot price of the precious metal for the first time on Friday over the milestone of $ 3,000, although this later decreased later.

A historical purchase of central banks has contributed to promoting a rally in recent years, but retailers have been rewarded for their bets on the metal for some time. Gold prices have risen by about 10 times since 2000 Bloombergwhile the S&P 500 only quadrupled. However, since interest in the metal increases, smaller investors want to think twice in particular before adding their portfolios at a speed.

Gold is not as fluid as it is often trained, said Rob Haworth, a leading investment strategist at US Bank Wealth Management, told Assets. After all, it is probably a distance to say that the metal is easily converted into cash and is interchangeable to other goods and services.

“You do not send gold to buy your domino pizza,” he said.

In the same sense, the metal can be more difficult for smaller investors to buy and unload compared to institutions at a competitive price, which often have better access to gold markets and larger amounts of sold quantities.

Nevertheless, Gold has long taken over as protection against inflation and market volatility. Preliminary results of the famous survey on the consumer mood of the University of Michigan showed that the respondents are more pessimistic about the US economy than since 2022. Many consumers, including republicans, said “frequent gyrations in economic policy” made it difficult to plan financially, well -known encirclement director Joanne Hsu.

Beyond President Donald Trump's on-and-off-and-tariff threats, has also contributed to this, a general lack of profit messages from companies Assets.

“Here people are looking for safe ports,” he said, “and gold can be seen in this way.”

Haorth is somewhat skeptical of the long-term prospects of the metal, but he found that the inflation expectations in the Michigan survey rose to 4.9%, compared to 4.3% in February and the highest reading since November 2022. On the other hand, the fear of an economic contraction could weigh up gold prices.