| WEEKLY ROUNDUP Gold Isn’t an Investment. It’s a Weapon. VIEW IN BROWSER 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. | 
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