Like the old saying goes, the best time to do something was years ago, and the second-best time is now: the same goes for gold. Gold has surged for 8 straight months, a streak only matched once before, just before the 2008 financial crisis. 1 Prices have jumped about 75% over the past year, topping $5,000 per ounce in January. Many investors wonder if they’ve missed their chance, but analysts say no, the gold rally is driven by long-term trends, not short-term hype.
One of the biggest forces behind the rally is the growing level of government debt worldwide. In the United States, federal debt exceeds 120% of GDP, with annual deficits around 6–7% of GDP. Other major economies, including Japan, the U.K., France, and Canada, also have debt above 100% of GDP.
