Despite fluctuations in the stock market, gold prices have reached record highs. On Wednesday, Bank of America significantly raised its gold price forecasts.
In mid-March, gold price surpassed $3,000 per ounce for the first time in history, following substantial gains earlier in the year.
Gold has traditionally been viewed as a stable asset. Once a currency before the dollar, gold is scarce and carries no credit risk, making it a reliable store of value during market fluctuations and rising inflation. This perception of gold's stability is echoed in the phrase "gold standard," which reflects its reliability and steady value.
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Avi Bulow, owner of Bulow Jewelers, noted the increased demand for gold, stating, "It's increased revenue because prices are higher now. People are buying heavier pieces of jewelry just to have that gold value on them." In the past year alone, gold has appreciated by 38%.
Bulow added that customers are requesting more substantial gold items, saying, "We have a few customers that have recently made rings, and they're just like, 'Make it as heavy as possible. I want an ounce of gold on this finger.' It’s pretty cool."
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The rising price of gold is not merely a fashion trend; it reflects a strategic investment. Gold typically appreciates in value when the value of currency declines. Its historical role as currency adds to its appeal. Following mid-March's milestone, Bank of America revised its gold price expectations upwards, forecasting $2,750 per ounce to $3,063 per ounce for 2025, and raising the 2026 forecast from $2,625 to $3,350 per ounce.
Bulow believes that gold prices will remain elevated due to global economic uncertainty, asserting, "I think it's here to stay — the $3,000-plus range, especially with all the uncertainty geopolitically. Ukraine and the Middle East. I think there's going to be a lot of economies going up and down, and that usually means with inflation and interest rates, gold prices are here to stay."
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