Why Bank of America says now’s the time to buy Gold
Gold has been the top pick for our clients all year, and it’s not hard to see why — gold is up more than 30% since January. Now even Bank of America is jumping on the bandwagon, calling it the ‘final safe haven.’ Welcome to the party, BofA! Why gold is shining brighter than ever:
🛑 Rising U.S. Debt: With U.S. national debt soaring over $35 trillion, traditional safe havens like Treasury bonds are becoming less reliable. Economics 101: spend money you don’t have, and surprise — debt keeps growing! Neither U.S. presidential candidate has a plan to fix it, making gold an increasingly attractive alternative.
📉 Falling Interest Rates: As the Fed starts to cut interest rates to stimulate the economy, the appeal of assets like gold increases. Unlike bonds, which generate less attractive returns when rates fall, gold retains its value.
🏦 Central Bank Demand: Central banks globally are stocking up on gold like it’s going out of style. They try to diversify away from currencies and reduce exposure to geopolitical risks, boosting gold’s demand and supporting its price.
This is why Bank of America predicts gold could hit $3,000 in 2025.
