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Fortune
Fortune
Greg McKenna

Gold prices are smashing record highs but it’s still a risky bet

A staff member holds out a bar of gold bullion to a potential buyer. (Credit: Bay Ismoyo—AFP via Getty Images)
  • Gold is traditionally viewed as an age-old hedge against inflation and market volatility, and the precious metal’s price has surged amid President Donald Trump’s on-again, off-again tariff threats. Finding liquidity can still be tricky, however, and the risks are particularly high for smaller investors. 

It turns out tariffs are good news for goldbugs. As trade policy uncertainty and recession fears rattle markets, surging demand for safe-haven assets helped briefly drive the precious metal’s spot price above the milestone $3,000 mark for the first time on Friday, though it declined later in the day.   

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