Investors Spark a New Gold Rush

Tech stocks aren’t the only investment having a big year. On Aug. 6 the price of gold hit a new record high of $2,067 per ounce. Even after sliding back under $2,000, gold was still up 28% as of early September. And over the past five years, the price of the precious metal has soared 75%. The recent surge has been driven by investors seeking a safe haven amid the economic chaos of the pandemic. While cash-strapped consumers have purchased less gold jewelry in 2020, the shortfall has been offset by institutional demand. Through August, the holdings of gold-backed exchange-traded funds grew by 938 metric tons, or some $51 billion. Meanwhile, global mining production—slowed by COVID-19 lockdowns—fell by 5% in the first half of 2020 versus 2019.

For Fortune Magazine, October 2020 issue.