We think gold looks good as a haven and a store of value. The main drivers are investment demand and insurance demand, with some seasonal demand as well (India weddings, China). But the true drivers tend to be panic, the US dollar, and interest rates. The main current con would be the strength of the US dollar, since gold is priced in US$. But rates should be heading lower, which is positive. As most currencies worldwide are being devalued, gold should hold its value against declines (this may now be true in Canada with what is going on). Gold doesn't pay interest, and there are costs to hold it (insurance and storage if one keeps it, and/or fees on a bullion ETF). But considering uncertainty, we think it looks good. Gold (and the US dollar) were the ONLY asset classes globally that rose in 2008 during the financial crisis. We would not expect miracles here but we see no reason why it cannot continue a relatively steady climb in 2025.
5i Research Answer: