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Gold Rush

Elijah Jumper, C'26

photo of gold bars

Greetings everybody! There’s been some time since the last finance blog post because of the break, but nonetheless, there have been some exciting things happening in the world. On this blog, we’ll be diving into the recent gold boom, artificial intelligence hype continuing, and the struggles Apple stock is facing.

Starting off, a common investment, and usually seen as a safe investment, is gold. Gold is a commodity and has been traded for thousands of years. Because of it being a commodity and constant desire for gold from consumers, gold is typically seen as a safe and steady investment. Lately, the price of gold has risen significantly. Many investors are examining this and trying to determine if there are any signs that can be taken from the rise in the price of gold. Personally, I think gold is a fair investment as it’s always in demand. Not only is it in demand because of it being an expensive metal that can show wealth, it has many practical and important uses throughout the world. I believe the recent rise in the price of gold is a reminder of the place commodities can have in an investor’s portfolio.

Going back to the reasoning and examinations by investors for the rise in gold, many are attributing the rising price to an expectation of rate cuts in the coming year. Rate cuts by the Federal Reserve are important to many investors as they have a direct effect on the rates of bonds and more cash-based investments, like certificates of deposits (CDs). If there are rate cuts, the returns from bonds and other investment instruments may lower. When this happens, many investors flock to gold as a hedge against lowering rates and returns. So, although a rising price in gold can be exciting for some to see, it could be a signal for lower returns in other investments.

Moving onto another important topic throughout the last week in finance, artificial intelligence (AI) talks and excitement have picked up again. With companies like Nvidia, and even J.P. Morgan, releasing statements about the impacts and powers AI has, people across the world are buzzing with the possibilities. Thus, various AI projects and companies are seeing an increase in investor interest. I believe the excitement will continue for some time and society has already seen the things artificial intelligence can do. If there are no mishaps or fear sparked by AI, I see the field seeing a cotenuous increase in investments.

Wrapping up the blog for this week, we’ll briefly discuss the household company Apple. Apple has seen some struggles in the last month after seeing all-time highs. There are various reasons for the fall in Apple stock, although two of the bigger reasons are a decrease in sales in the Asian market and lower consumer spending. Because Apple is such a popular company and investment, I thought it important to add this in the blog for the week. However, I think the troubles Apple is facing are temporary. They are troubles that need to be handled and solved, but the panic surrounding Apple currently will subside eventually in my opinion.

Looking forward to next week’s review in finance!

Elijah Jumper, C'26