Gold might be an investment worth considering now

Salon - Apr 11th, 2025
Open on Salon

Gold has achieved a record price of $3,177.50 per ounce, driven by a mix of global economic uncertainty and geopolitical tensions. Factors such as tariff uncertainty under the Trump administration and soaring inflation expectations have contributed to this surge. Gold's status as a safe haven asset is reaffirmed, especially during times of market stress and economic slowdowns. Analysts like Maleeha Bengali and Lina Thomas highlight gold's role as an inflation hedge, while Sherry Finkel Murphy advises on portfolio diversification using gold.

The rise in gold prices is not entirely unexpected, as central banks have been increasing their gold reserves since the U.S. froze Russian state assets post-Ukraine invasion. Given its non-confiscatable nature, gold remains a preferred asset for central banks. The World Gold Council anticipates continued demand for gold, driven by central banks and ETF investors. This trend underscores gold's enduring appeal as a hedge against economic instability and market volatility, with various investment options available for both professional and non-professional investors.

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RATING

6.8
Fair Story
Consider it well-founded

The article provides a well-structured and timely analysis of gold as an investment option amidst current economic uncertainties. It effectively communicates its main points with clarity, using expert opinions to support its claims. While the article is largely accurate, it could benefit from more precise data and a broader range of sources to enhance credibility. The focus on the positive aspects of gold investment limits the exploration of potential risks or alternative viewpoints, affecting balance and controversy dimensions. Overall, the article offers valuable insights and practical advice for readers interested in financial markets, with moderate potential to influence investment behavior and public opinion.

RATING DETAILS

7
Accuracy

The news story presents several factual claims that are largely accurate but require verification for precision. For instance, the claim that gold reached a record high of $3,177.50 per ounce is significant and aligns with trends of gold prices rising due to economic uncertainty. However, it is essential to verify the exact date and context of this record, as gold prices fluctuate frequently. The statement about U.S. consumer sentiment worsening and inflation expectations surging to their highest since 1981 is plausible but needs verification against specific economic data or surveys.

The article correctly identifies central banks' increased gold reserves following geopolitical tensions, which is a well-documented trend. However, the causal relationship between Trump's tariffs and gold's rise, while plausible, should be supported by more specific data or expert analysis. The forecast by Goldman Sachs that gold prices could reach $3,100 by the end of 2025 is a credible claim, but the article should provide more context or direct quotes from the forecast to enhance accuracy.

Overall, the article's factual basis is strong, but it would benefit from more precise data and direct sourcing to fully substantiate its claims.

6
Balance

The story provides a balanced view of gold as an investment option, highlighting both its potential benefits and the reasons behind its recent price surge. It includes expert opinions from various sources, such as Maleeha Bengali and Lina Thomas, which add depth to the discussion. However, the article predominantly focuses on the positive aspects of investing in gold, such as its role as a safe haven and inflation hedge.

While it briefly mentions the risks of market volatility, it could have been more balanced by exploring potential downsides or alternative viewpoints, such as the impact of fluctuating gold prices on investors or the risks associated with geopolitical dependencies. Including perspectives from skeptics or those who might argue against gold as a primary investment could provide a more comprehensive view.

In summary, while the article covers multiple perspectives, it leans towards a favorable view of gold investment without delving deeply into potential risks or alternative investment strategies.

8
Clarity

The article is well-structured and clearly presents its main points, making it accessible to readers with varying levels of financial knowledge. The language is straightforward and avoids overly technical jargon, which helps in maintaining clarity and understanding.

The logical flow of the article is strong, starting with the current state of gold prices and then exploring the reasons behind its rise. It effectively uses expert quotes to support its narrative and provides practical advice for potential investors, such as exploring mutual funds or ETFs.

Overall, the article is clear and concise, with a logical structure that aids comprehension. It successfully balances detailed information with readability, making it suitable for a broad audience.

7
Source quality

The article cites several credible sources, including experts from asset management and investment firms, which lends authority to its claims. Maleeha Bengali and Lina Thomas are quoted, providing insights from professionals in the field. However, the article could enhance its credibility by referencing more diverse sources, such as academic studies or reports from financial institutions, to support its claims about gold prices and economic trends.

The reliance on expert opinions is beneficial, but the article would benefit from a broader range of sources to corroborate its claims, such as data from the World Gold Council or official economic reports. Additionally, while Goldman Sachs is mentioned, direct quotes or detailed excerpts from their forecasts would strengthen the article's authority.

Overall, the sources used are reputable, but the article could improve by incorporating a wider variety of authoritative references to provide a more comprehensive view of the topic.

6
Transparency

The article provides a reasonable level of transparency by attributing quotes to specific experts and mentioning organizations like Goldman Sachs and the World Gold Council. However, it lacks detailed explanations of the methodologies or data sources behind some of the claims, such as the exact nature of the inflation expectations or the specifics of the gold price forecasts.

While the article mentions the role of central banks and geopolitical tensions in gold's price rise, it does not delve into the underlying data or offer links to primary sources or reports. Greater transparency could be achieved by providing more context or background information on the economic indicators referenced, such as the specific inflation data or consumer sentiment surveys.

In conclusion, the article offers some transparency through expert attribution but could improve by more thoroughly explaining the basis of its claims and providing direct access to supporting data or reports.

Sources

  1. https://economictimes.com/news/international/us/gold-rate-today-why-is-it-above-3000-and-what-are-top-banks-predicting-next-for-2025/articleshow/120099009.cms
  2. https://stage-curacao.nl/marketing-stage-curacao-merel/
  3. https://www.businesstoday.in/markets/stocks/story/gold-prices-reach-record-high-amid-tariff-concerns-471638-2025-04-11
  4. https://kyym.ru/sonunnar/main/10920-uluustaa-y-beterineriije-salaatygar-aan-bastakytyn-beterineer-aatyn-i-erdiler
  5. https://fortune.com/2025/04/10/how-to-buy-gold-outlook-tariffs/