Guess how much for just one ounce of gold right now?  Over US$4000! That’s a record high. Cash fi gold anyone?

I’m Kalilah from Money Media, giving you money news for the Caribbean.  And at the end of this video, I’m gonna tell you how you can invest in gold from the Caribbean.

So gold prices have been on a historic rally this year.  It’s up 54% since the start of the year, and recently passed the 4,000 dollar mark.

Gold is considered a safe haven asset or crisis commodity because its demand tends to go up during times of uncertainty. Unlike other commodities, like oil, that lose value during crises, gold has historically always kept its value.   

Analysts aren’t 100% sure why, except maybe one day something will happen and we won’t be able to print money. Then gold, which doesn’t erode and can easily be melted into coins, will become the standard method of payment.  

So, it’s essentially a backup plan in case other forms of currency don’t work. This latest rally seems to be tied to rising geopolitical uncertainty in the US, the Middle East and Eastern Europe.

For example, gold prices rose to US$3,500 per ounce earlier this year over concerns that US President Donald Trump would fire chair of the Federal Reserve, Jerome Powell.

It spiked again following the US Government shutdown in October. The US Congress could not agree on the country’s budget, resulting in a shutdown of all federal agencies and programmes until both parties agree on a spending bill. 

The US Fed also announced its first interest rate cut for 2025 in September. They have also indicated that at least two more cuts are expected before the year ends. 

Lower interest rates tend to make non-yielding assets like gold more attractive.

According to the World Gold Council, inflows into gold ETFs hit US$64 billion year-to-date, with a record US$17.3 billion in September alone.  In other words, a lot of people are buying gold.

Some analysts say that a “fear of missing out” is also boosting the rally. 

And that’s the bottom line.