Google search for ‘buy gold’ spikes 64% amid recession fears – London Business News | Londonlovesbusiness.com

Between commodity and stock markets doing exceptionally well in 2024 and the persistent recessionary fears, gold has been doing well in recent months and is expected to climb to ever-higher all-time highs (ATH) before the end of the year.

Interest in buying gold has, however, seen a particular spike in the US since the start of August. After examining search trends in the 90 days between May 6 and August 6, Finbold research discovered that interest for the keyword ‘buy gold’ spiked 63.93% since the end of July.

A convergence of events, including disappointing job report figures in the US and Japanese and Taiwanese stock markets having their worst day in multiple decades, developed into a full-blown recession panic by Monday, August 5.

Finbold’s research also uncovered that investors and traders in Hawaii and Alaska have been the most interested in protecting their wealth by moving it to the traditional safe haven.

Perhaps surprisingly, given it is home to the highest number of American billionaires and millionaires, California was only the tenth entry on the list when it comes to interest in buying gold at the start of August 2024.

Investors still see gold as a major safe haven despite market dynamic changes

Along with the traditional factors that contribute to gold being seen as a store of value – and that have contributed to its rally – the precious metal is increasingly gaining an industrial use case in the hardware that is fueling the ongoing artificial intelligence (AI) boom.

As Andreja Stojanovic, a co-author of the research pointed out, such a change in the dynamic may prove a double-edged sword:

“Still, while such an industrial use has helped drive gold’s rally, it also presents a risk to its stability. Should the manufacturing demand for the metal dwindle due to a bubble bursting or an alternative being funded, the price of the commodity could also diminish.”

Finally, whatever the future may hold for gold and the wider economy, the rocketing in search interest demonstrates that the commodity fully retains its reputation for stability and safety well into 2024.