Shiny gold

Gold prices in USD have surged, climbing 62% over the past five years, 29% in the past year, and 19% just this year. The resurgence in demand for gold is driven by factors such as rising interest rates, inflation, and geopolitical uncertainties. Recent financial market volatility has highlighted that cryptocurrencies may lack the same safe-haven appeal as gold. Unlike assets that generate cash flows, gold's value cannot be determined by discounting future dividends or coupons. However, one approach to assessing its relative value is by comparing its performance to technology stocks. The Gold-to-Nasdaq ratio is currently at a low point, potentially signaling a bottom. As a result, gold could serve as an effective hedge against potential downturns in Big Tech stocks.