Gold prices are high - but here’s why investors are still flocking to it
Looming trade wars, along with increasing global debt, are driving investors to the precious metal.
READ MORE : http://www.euronews.com/2025/03/06/gold-prices-are-high-but-heres-why-investors-are-still-flocking-to-it
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Looming trade wars, along with increasing global debt, are driving investors to the precious metal.
READ MORE : http://www.euronews.com/2025/03/06/gold-prices-are-high-but-heres-why-investors-are-still-flocking-to-it
Subscribe to our channel. Euronews is available on Dailymotion in 12 languages
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NewsTranscript
00:00Simon Popple, investment expert and managing director of Brookville Capital.
00:05It's great to have you with us, Simon.
00:07Gold has been a hot topic recently as US President Trump's trade policies have sent prices to
00:13record highs.
00:14But can you explain a bit further exactly why people are putting gold in their portfolio
00:19now?
00:20Right.
00:21Well, I mean, I think gold is a long term investment.
00:26And it's viewed as a hedge against inflation.
00:32And when the world is worried, you know, you've got geopolitical risk, you've got very high
00:37debt levels.
00:38You know, gold's been around for thousands of years.
00:41And I think that investors who perhaps didn't look at it in the past start to look at it
00:48now.
00:49And I think it's become far more relevant to the investment community than perhaps it
00:53used to be.
00:55And we mentioned President Trump there.
00:58But I want to ask you, what are the other key factors that are influencing gold prices
01:02today?
01:03I think there's actually quite a lot of factors influencing the gold price.
01:07I mean, one is obviously debt.
01:10You know, the world is increasingly becoming more indebted.
01:17You've also got worries of inflation, you know, especially with Trump and his tariffs.
01:22I mean, you know, that could make things very expensive with the retaliatory tariffs as
01:29well. And I think there's a lot of uncertainty.
01:34I think we've lived in a world where we have far more certainty than perhaps we do today.
01:38And I think that the uncertainty is moving people more towards what are considered safe
01:46haven assets such as gold, rather than perhaps, you know, some other sectors that they
01:51previously, you know, were interested in.
01:54And prices are high at the moment, but is it always a good time to invest in gold?
02:01I think it is. I mean, I think when you say prices are high, I mean, prices are high
02:05relative to where they've been.
02:07If you compare the current bull market with the one in the late 70s, early 80s, you know,
02:14the price could actually go a lot higher.
02:16And I think, you know, people who are waiting for the price to come down could be, you know,
02:22sadly disappointed because perhaps it doesn't.
02:25Unfortunately, we don't know.
02:26But I would I would advocate that if you're thinking about investing, you know, perhaps
02:32put, you know, 30 percent or 50 percent of what you what you want to invest in today.
02:39If the price continues to go up, you can then decide whether to put more in at a higher
02:43price or, you know, ride out the good days.
02:46And obviously, if the price comes down, then you've got an opportunity to to invest at a
02:52lower price. So unfortunately, we don't know.
02:55But I would strongly advocate that people at least jump in and have some exposure no
03:01matter how big or small.
03:03And I'd just like to go back to something you mentioned earlier.
03:07You said that gold was a hedge against inflation.
03:10But how safe of an asset is it really?
03:14Gold prices go up and down and inflation tends to go up.
03:18So there are times when gold hasn't been a good hedge against inflation, but there's
03:24times when it has been a very good hedge against inflation.
03:28And so I don't think there's a perfect hedge against inflation.
03:31And I think the important thing to remember here is we're talking about your personal
03:36level of inflation.
03:37If you buy any product, it is linked to probably CPI or RPI, but your personal level of
03:44inflation might be much higher.
03:46So, you know, if you've got a product that's, let's say, giving you CPI, which I think
03:52is, I don't know, about three and a half-ish, then if your personal level of inflation is
03:56more like nine, then you're not really getting the protection that you want anyway.
04:01So it's a very personal thing.
04:04And I think the other thing is it's got global appeal.
04:08I can't think of many assets that have got global appeal.
04:11So if your currency takes a bath, then you'll probably find there's still strong demand
04:17for it elsewhere in the world.
04:19And it's not like a property or something like that, which is very much linked to your
04:24domestic market.
04:26Simon Popple, thank you so much for sharing your insights on Euronews.
04:29That's great.
04:30Thank you very much.