Gold is up because everything else, like the Chinese yuan and the European government bonds are down while the US dollar, euro, and the British pound all face uncertainties.
China let the yuan drop to offset the last set of tariffs. This would make Chinese exports cheaper and US exports more expensive.
On the other hand, the European government bonds are unbelievably low that when one decides to keep one's assets in cash, that person has to pay a borrower just to lend him money.
Likewise, the euro and British pound's fate are still unknown because of the pending British exit as the United Kingdom (UK) does a no-deal Brexit from the European Union (EU) and the European Single Market with few or no deals in place.
The UK's position in the EU is notable because it puts more money into the EU budget through its membership fee compared to what it gets back.
According to Josh Strauss, a long-term gold investor and money manager at Appleseed capital, on why people want gold, "Everybody wants a lower currency," and because "they're not making more gold, it's the place to be."
The bullion rose to it's six-year high rising 1.5% this Monday to a total of 17% ever since the tariff issues came up.
It surpassed millennial heavyweights like Apple, Alphabet, and Netflix by 53 percentage points.
However, it should be noted that this old school precious metal crashed in the 2008 financial crisis along with everything else. And it lost about three-quarters of its purchasing value during the 1980s and 1990s.
Likewise, Wall Street only gives gold attention only after it has risen.
Also, according to Fact Set, history lessons advise owning gold only when it's above the 200-day trading average and avoiding it when it's below. As of now, gold is above this average.
However, this strategy that worked since the mid-1970s that reduced risks and increased profits is no guarantee will work out the same all the time.
Many investors are usually reluctant buying into an asset that has already risen.
Wells Fargo head of real asset strategy, John LaForge, acknowledges gold is a great alternative to any risk caused by geopolitical tensions and economic instability.
Still, he notes that it has become too "pricey", " at $1,425 an ounce today. He advises investors to look into cheaper but precious alternatives like silver and platinum.
In the end, the market is showing that gold is just a trend that has come up time and again in history when the economy is jittery.
And just like any financial trends, the market is just moving in this direction over a stretch of time.
The proof is another forecast on an 8% increase in gold's value is coming soon.
