{"id":259052,"date":"2026-01-30T08:48:07","date_gmt":"2026-01-30T08:48:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/259052\/"},"modified":"2026-01-30T08:48:07","modified_gmt":"2026-01-30T08:48:07","slug":"gold-rush-as-price-soars-well-past-us5000-is-a-bubble-about-to-burst","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/259052\/","title":{"rendered":"Gold rush: As price soars well past US$5000, is a bubble about to burst?"},"content":{"rendered":"

He said another factor was crypto company Tether reportedly buying one to two tonnes of gold a week.<\/p>\n

At today\u2019s price, that would be US$172 million to US$344m a week.<\/p>\n

The Los Angeles Times reported Tether was hauling a tonne of gold a week into a high-security Swiss bunker for its reserves and as backing for its own gold stablecoin.<\/p>\n

Goodson said it was a remarkable event, considering Britain left the gold standard in the 1930s and United States President Richard Nixon ended convertibility of the US dollar to gold in the 1970s.<\/p>\n

\u201cCurrency\u2019s come full circle.\u201d<\/p>\n

The democratisation of trading, epitomised by the rise of platforms such as Sharesies, was cited as another factor.<\/p>\n

Goodson mentioned exchange-traded funds (ETFs), which let investors gain from a gold price bump without needing physical bullion like that stashed in Tether\u2019s Swiss bunker.<\/p>\n

Goodson said there\u2019d also been a recent \u201cexplosion\u201d of supply, including from new mining operations in Australia.<\/p>\n

There was also always the secondary supply source, such as from individuals taking unwanted jewellery to the local dealer.<\/p>\n

Enthusiasm for gold had spilled over into silver, he said.<\/p>\n

Silver was at US$114.71 ($189.67) an ounce this afternoon, up from barely US$70 a month ago and more than three times what it was a year ago.<\/p>\n

These commodity markets were \u201cutterly swamped by retail speculation and demand,\u201d Goodson said.<\/p>\n

\u201cThe other thing that\u2019s really amusing is it\u2019s spilled over into copper markets.\u201d<\/p>\n

Bloomberg today described \u201cChina\u2019s Metals Mania\u201d, and Goodson said he\u2019d seen reports of Chinese people queuing to buy bricks of the metal.<\/p>\n

He said the debasement of fiat currency was one reason for gold\u2019s surging value.<\/p>\n

\u201cClearly the US is following a weak US dollar policy.\u201d<\/p>\n

The Wall Street Journal said US President Donald Trump viewed a strong dollar as incompatible with his priorities of faster growth, strong US manufacturing and a smaller trade deficit.<\/p>\n

It also said escalating US-Iran tensions<\/a> were influencing the gold price, with the US moving more firepower into the Middle East.<\/p>\n

\u201cAnother aspect to it is, normally over the very long-term the relationship to the gold price has been real interest rates,\u201d Goodson said.<\/p>\n

\u201cGold pays no yield. Normally, when real interest rates are quite high, which they are at the moment, normally that\u2019s bad for the gold price.\u201d<\/p>\n

But with all those other factors influencing the price, that was not currently the case.<\/p>\n

\"MattMatt Goodson says retail enthusiasm for gold has spilled over into silver. Photo \/ Dean Purcell<\/p>\n

And he said there was no doubt people\u2019s fear of missing out was a factor in the gold price surge.<\/p>\n

Goodson said the market was typified now by \u201cbooming retail interest and the signs of a classic bubble\u201d.<\/p>\n

He said it was anybody\u2019s guess if we were early or late in the bubble life cycle.<\/p>\n

\u201cIt\u2019s simply impossible to say whether we\u2019ve seen the peak.\u201d<\/p>\n

John Weekes<\/a> is a business journalist covering aviation and courts. He has previously covered consumer affairs, crime, politics and courts.<\/p>\n

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"He said another factor was crypto company Tether reportedly buying one to two tonnes of gold a week.…\n","protected":false},"author":2,"featured_media":259053,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[149038,1443,665,806,51,42110,2836,138,4381,3371,4241,6101,149036,185,21936,111,139,69,4517,3333,12937,21532,3048,44697,544,61,1865,149035,149037,6436,23331],"class_list":["post-259052","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-149038","tag-about","tag-around","tag-as","tag-auckland","tag-bubble","tag-burst","tag-business","tag-customers","tag-dealer","tag-gold","tag-good","tag-hovered","tag-is","tag-lately","tag-new-zealand","tag-newzealand","tag-nz","tag-past","tag-price","tag-prices","tag-rush","tag-said","tag-soars","tag-some","tag-to","tag-today","tag-us5000","tag-us5300","tag-well","tag-weve"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/259052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=259052"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/259052\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/259053"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=259052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=259052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=259052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}