Why a professor of finance isn't impressed by gold's stunning rally in 2025

Core Viewpoint - Gold has reached an all-time high of $4,074 per ounce in 2025, with a year-to-date increase of approximately 55%, outperforming risk assets like stocks and bitcoin, driven by fears of inflation and geopolitical conflicts [1][2][5] Group 1: Market Trends - Gold's significant rally has led to record inflows into gold ETFs, indicating strong investor interest [2] - The current gold rally is described as the best year since the 1970s, yet skepticism remains regarding its long-term value [4][5] Group 2: Expert Opinion - Peter Ricchiuti, a finance professor at Tulane University, argues against the premise of gold's rise, citing its lack of real-world utility compared to other metals like aluminum, platinum, and silver [4] - Ricchiuti compares gold to bitcoin, suggesting both are speculative assets rather than true investments, as they lack intrinsic value [4][5] - He criticizes the herd mentality among investors, suggesting that the enthusiasm for gold is driven by the "greater fool theory," where the belief is that someone will always pay more for the asset [3][4]