Kitco News: Gold Maintains Historic Highs Amid Global Uncertainties

Investors typically don’t think much of gold. The past few years saw some renewed interest as inflation soared. But as that inflation came down, investor interest went elsewhere.

However, gold’s price continues to trend higher. Signs point to increased central bank buying over the past few years. Given that central banks can diversify their holdings with foreign currencies, the choice of gold is clear. It’s a sign that inflation remains an issue, and any country could see inflation jump.

Plus, while markets have been rising this year, there’s been a backdrop of rising global tensions. From Israel and Iran, to Russia’s invasion of the Ukraine, global conflicts remain front and center.

Once we see individual investors push into gold, prices could push even higher. Gold’s steady trend higher this year has seen few dramatic price swings. That indicates demand remains strong. And globally, supply of new gold sources remains tight.

That’s a recipe for higher prices. As investor interest in gold increases, interest in the mining stocks should tick higher as well.

Investors can get started with the Van Eck Gold Miners ETF (GDX), which owns a basket of the major mining stocks.

When investment interest in gold soars, smaller mining companies will see a bigger percentage gain. Investors can take advantage of with the Van Eck Junior Gold Miners ETF (GDXJ).

To read the full review of why gold is likely to keep trending higher, click here.