Gold’s long-term outperformance vs. S&P500 shows cracks in traditional investments. Gold ETFs just saw a 2-month inflow of $12 Billion, the largest since 2020

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Gold has officially crossed a major threshold, pushing above $3,150 per ounce for the first time in history. This surge comes as investors flock to the most historically reliable store of value known to mankind. A flight to safety is underway, with gold proving once again that it’s the ultimate hedge against uncertainty. After all, thousands of years of human history can’t be wrong.

The U.S. dollar, once a symbol of strength, is facing downward pressure, as are the yields on two-year Treasury bonds. It’s a sight that has become eerily familiar in recent months. The trend? The dollar is weakening while gold strengthens. The reality is this: the dollar’s reign as the world’s dominant reserve currency is not as secure as many would like to believe. Gold has quietly and steadily gained 18% so far this year. Analysts aren’t backing down either, Goldman Sachs is now predicting a rise to $3,300 by year’s end. It’s a staggering forecast, but not one without merit given the state of current global markets.

Looking at the broader picture, gold’s recent performance has outpaced the S&P 500 by a wide margin since 2000, when central banks began flooding markets with endless money and bailouts. Over two decades of debt accumulation, unprecedented money printing, and financial engineering have given us a distorted market. Yet somehow, the majority of retail investors still cling to the myth that the S&P 500 is the best long-term bet. It’s a fascinating cognitive dissonance in the face of mounting evidence that the traditional stock market approach is facing headwinds.

What’s clear is that gold has become the go-to asset for those who are skeptical of the current economic system. When the U.S. dollar falters and bond yields slide, people turn to gold. But this is more than just a reaction to short-term volatility. It’s a recognition that the fundamentals of the global financial system are deeply flawed. Investors are seeking stability, and gold is delivering.

In short, the era of easy money is coming to an end, and gold is the ultimate beneficiary. As the dollar’s value diminishes and yields drop, gold will continue to shine. If anything, the move above $3,150 is just the beginning.

Gold ETFs just saw a 2-month inflow of $12 Billion, the largest since 2020
byu/RobertBartus inEconomyCharts