Hello, Reader.
“Gold will never produce anything,” Warren Buffett once declared. “Gold has two significant shortcomings, being neither of much use nor procreative.”
To be sure, gold is not an investment in the classic sense of the word. Buffett is right about that – and that’s why he dismisses the ancient monetary metal.
But he’s wrong that the gilded asset “will never produce anything.” Today, for instance, it produced a record high.
Spot gold surged past $4,600 an ounce for the first time, driven by geopolitical concerns and market volatility.
Gold often rallies as a safe-haven asset during moments of geopolitical tension. When these crises flare up, you don’t bust into your nest egg to buy penny stocks. You buy gold (unless you’re Warren Buffett).
Indeed, gold prices have almost doubled in the past two years amid increased geopolitical tensions. And right now, rising tensions with Venezuela and Iran are amplifying gold’s role as a safe-haven asset.
Furthermore, our newfound interest in South American geography may not be a reason to buy gold, but it is at least a reason to not sell it. For example, it is not a stretch to imagine that our involvement in Venezuela will embolden the Chinese to “involve” themselves in Taiwan. And that’s just one of many ramifications.
So, with continuing international distractions and near-term uncertainty, gold prices remain near all-time highs. In fact, the mystical metal is up more than 30% in the past six months alone, and 64% in 2025 – its best performance since 1979.
Geopolitical uncertainty isn’t the only factor driving gold’s gain. The metal’s record-high also follows Friday’s poor jobs report, bolstering interest rate cut bets by the U.S. Federal Reserve.
The gold price almost always rises when interest rates trend lower. Most recently, the gold price rocketed higher from 2001 to 2011, when the Federal Reserve was systematically suppressing rates. A decade later, the gold price soared during the pandemic when the Fed was holding rates close to zero.
And because interest rates are falling, the dollar exchange rate might also drift lower. A weak dollar usually manifests itself as a strong gold price.
So, anticipation of rate cuts generally makes gold a more attractive asset.
But please remember: Gold is not an investment in the classic sense of the word. It defies traditional investment calculations. Excel spreadsheets are useless.
That said, gold and gold stocks can offer unique, safe-haven trading opportunities. I share how to get in on these opportunities below.
But first, gold wasn’t the only thing “producing” headlines this week. So, before you line your portfolio with gold, let’s take a look back at what we covered here at Smart Money.
Smart Money Roundup
Louis Navellier’s 5 Predictions for 2026 — and a Bonus Warning
InvestorPlace Senior Analyst Louis Navellier has spent decades in the stock market, and his track record speaks for itself. That’s why his outlook for the new year deserves serious attention. Louis shares five market predictions — plus a bonus prediction that may be even more important, addressing a quiet threat lurking beneath the surface.
The Truth About Venezuelan Oil
The recent geopolitical events between the U.S. and Venezuela have many investors salivating over the South American nation’s massive oil deposits… but the real story is more complicated. Dive into Thursday’s Smart Money, where I discuss why I am looking elsewhere for opportunities in oil.
CES 2026 Just Proved Why You Shouldn’t Buy AI Hype Stocks
Last week’s CES 2026 in Las Vegas starred a long list of tech names, touting a string of incredible advancements. Surely, these are the companies that make the best of the best AI products — but that doesn’t mean they’re the best of the best AI stocks to invest in. Continue reading to find out where the valuable stocks are hiding in today’s AI boom.
The Hidden Crash That Could Trap Investors in 2026
Called “The Lost Decade,” Louis Navellier explains the time when the S&P essentially went nowhere. Not much was going on the surface, but Louis was looking underneath, noticing market leadership quietly shifting. He sees something similar approaching today as a small group of mega-cap stocks continues to dominate portfolios. Read on to learn more about how Louis thinks you should prepare yourself for hidden crashes in 2026.
Stay Gold, Investors
I have long recommended gold and other precious metals as a hedge against uncertainty across my services. Two of my current mining recommendations in Fry’s Investment Report are both up over 250%.
I also recommend a closed-end fund that holds roughly half its assets in physical gold. That recommendation hit a new 52-week high today, and is up over 65% since I recommended it last June.
And given the safe-haven factors that are aligning behind the gold price, the yellow metal will likely “produce” even more record-breaking upside in the months ahead.
Very shortly, I will be releasing the January issue of Fry’s Investment Report, where I dive even deeper into the glittering safe-haven asset.
In the issue, I will detail why gold is a proven, battle-tested hedge that behaves very differently from risk assets, like bitcoin. Despite being labeled “digital gold,” investors continue to trust physical gold – not bitcoin – as the real safe haven when conditions turn hostile.
So, diehard fans of bitcoin, beware.
To read my latest research as soon as it’s released, click here to join me at Fry’s Investment Report today. As a member, you will also receive all of my gold recommendations.
Plus, between monthly issues, I’ll send you regular portfolio updates to keep you informed on company highlights, overall performance, adjustments to our tactics, and more.
Regards,
Eric Fry
