Gold hits fresh record

Gold continues to trade at record highs, having rallied over 30 per cent this year. With many investors viewing gold as a safe haven in the midst of global economic uncertainties, the demand for gold is surging. Rael Demby, the CEO of the South African Gold Exchange & the Scoin Shop, recently shared his insights on the current trends in the gold market with CNBC Africa. Demby highlighted that the current economic issues, geopolitical tensions, and uncertainties surrounding the future of the dollar are driving the demand for gold. He emphasized that gold has historically been sought after during uncertain times and it is no different now. Investors who have held gold for decades are now capitalizing on the high prices and selling their holdings. While it may not be the best time to buy at an all-time high, it presents a great opportunity for sellers. Demby refrained from making specific price forecasts but expressed confidence in the bullish trend of gold. He mentioned the upcoming US elections as a potential catalyst for further price increases and advised investors to keep gold as a part of their diversified portfolios. The CEO noted a significant increase in demand for physical gold, especially from first-time buyers and individuals looking to capitalize on the high prices. He highlighted the tangible benefits of holding physical gold over investing in exchange-traded funds and futures, emphasizing the trust and reliability that comes with physical ownership. Demby also shed light on the value of Krugerrands, the iconic South African gold coin, mentioning that certain limited editions and proof Krugerrands can fetch higher values over time. Reflecting on his long tenure in the gold business, Demby noted that while there have been booms and busts in the industry, the current surge in gold trade activity is unprecedented. He stressed that gold's intrinsic value, scarcity, and historical significance make it a compelling investment option. Demby also shared his view that gold is currently undervalued, citing its finite supply compared to endlessly printable fiat currencies. He underlined the belief among experts and market makers that gold will continue to rise in the future, making it a valuable asset for investors to hold. As the global economy faces ongoing challenges and uncertainties, the shine of gold as a safe haven asset continues to allure investors and collectors worldwide.