The shiniest new investment on the market is…gold. Recently, the metal’s futures are up over 14% and the price per ounce has hit record highs – rising about 20% this year.

Why Now?

According to CNN, “Central banks see gold as a long-term store of value and a safe haven during times of economic and international turmoil.” With the war in Ukraine and Gaza, banks are concerned about an overreliance on the U.S. dollar.

Some were buying gold because they expected the interest rates to fall. “When interest rates fall, gold prices tend to rise, as bullion becomes more appealing than income-paying assets like bonds,” according to John Towfinghi of CNN.

The falling rates might even push the price to $4,000.

Is Gold Less Volatile?

While gold is considered a hedge against volatile global conditions, it can also be volatile. Campbell Harvey, professor of finance at Duke University told CBS News, “its movements up and down can be very sharp.”

Costco

Even retail behemoth Costco has begun selling gold and silver. One estimate has Costco’s gold sales at $100 million per month. While the retailer is probably not making a lot of profit, the sale of gold and silver have driven e-commerce sales, Costco Executive Vice President Richard Galenti reported on an earnings call in March. According to a Bloomberg survey, “About 77% of surveyed Costco outlets that stock bullion bars were sold out in the first week of October.”

BRIC Nations

Some of the main purchasers of gold are the BRIC countries, Brazil, Russia, India, China, and South Africa. These global trading partners are moving away from the Dollar and Euro as trading currency and turning to gold. Financial expert Peter Grandich sees this as a troubling trend that Wall Street thinkers have not understood. “They have not comprehended and understood how critical it is that countries are forming together to trade, not with us, but away from us, and to use alternatives to our currency, which is currently the world reserve currency,” he told Drew Mariani.