Welcome back to our Sunday edition, where we round up some of our top stories and take you inside our newsroom. If you’ve been daydreaming about making a life change, a former consultant told us why she left her six-figure job to hike for five months.
On the agenda today:
But first: It’s a gold rush.
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This week’s dispatch
Srinophan69/Getty Images
Going for gold
It’s been an ugly year for markets. Stocks are down. The bond market is swinging wildly. The dollar is near a multi-year low.
One big outlier: gold.
The precious metal has surged this year, repeatedly hitting record highs and smashing over $3,500 an ounce last week for the first time. Investors often turn to gold as a place to hide when uncertainty mounts. With tariffs, trade wars, recession worries, and inflation concerns top of mind, there has been no shortage of uncertainty this year.
That means gold is sparkling more than ever, further solidifying its worth as the ultimate safe haven for investors. Even billionaire investor and known gold bull John Paulson is doubling down.
Gold’s rally has far-reaching implications beyond markets and billionaires. It’s also affecting everyday people.
I sat down with BI reporter Dominick Reuter, who has been chronicling the real-world impact of gold’s latest surge.
Dom, gold bugs are having a moment as the price soars to dizzying heights. What are gold enthusiasts telling you about the metal‘s big rally this year?
The run-up in gold prices has been going on for a while now, largely because of the metal’s value as a hedge against inflation and as a financial safe haven in uncertain times. Avid collectors are typically distrustful of large institutions like governments and banks, and see gold as a way to maintain control over their wealth.
People can now purchase gold bars at Costco. One buyer told you he sees Costco as “the gateway drug to gold investing.” Why has Costco become such a hotbed for gold buyers?
People like buying gold from Costco for the same reason they buy other stuff there: high trust and low markups. Members really trust Costco, and its gold prices are often within a few percentage points of the spot price.
Some collectors have even figured out hacks that maximize the company’s rewards and credit card points to actually make some money in the transaction. The main challenges are the availability of supply and shipping times. Still, if you have the cash, it could be worth it.
Gold has surged while many other financial markets have tumbled this year. These moves have real-world implications. How is gold’s rally playing out in everyday life?
Part of why gold is surging is because other markets are tumbling. Yes, gold is increasing in value, but the dollar is also sliding, so that’s why we’re seeing eye-popping numbers. The bigger shifts are driven by central banks shifting their reserves from currencies to gold.
Of course, gold is also used to make actual stuff that people buy. One jewelry maker told me the acceleration in gold prices (coupled with new tariffs on gemstones) will likely soon make engagement rings about 10% more expensive.
Prepping for private equity’s recruiting whirlwind
Getty Images; Tyler Le/BI
You just graduated, have an investment banking job lined up, and are enjoying your last weeks of freedom before your start date. But then you get an email from a private-equity recruiter: On-cycle recruiting has begun — for a job that won’t start for two years.
Not much of PE’s talent comes from this early recruiting process, but it may still be worth participating. BI spoke with recruiters to understand how the process works.
Are you ready for it?
Eating at the world’s northernmost McDonald’s
Noah Sheidlower
Tromsø, Norway, may be known for its reindeer burgers and elk salami, but its McDonald’s has also garnered some tourist fanfare.
BI’s Noah Sheidlower stopped by but found most of the menu and decor weren’t much different than any other McDonald’s restaurant. However, that may be a good thing, considering the trek.
One McFlurry stood out.
A recession indicator for dinner
Getty Images; Chelsea Jia Feng/BI
Have you been craving pizza lately? Not a slice from the corner pizzeria, and not what you get at a sit-down restaurant — but the kind you pick up from the grocery store freezer aisle?
If so, you’re not alone. When the economy’s down, frozen pizza sales go up, as people replace going out to eat with comfort food. That’s the gist of the Pepperoni Price Index.
A delicious sign of economic decline.
Microsoft goes harder on low performers
Stephen Brashear/Getty Images
The tech giant is instituting new policies aimed at culling low performers amid a broader, industry-wide shift toward tougher management.
BI viewed an internal email from Microsoft’s chief people officer, which shows that the new policies include a two-year rehire ban on low performers and a new exit option for them.
Read the full email.
Also read:
This week’s quote:
“What we are witnessing today is not normal, and it must not be normalized.”
— New York City Bar Association president Muhammad U. Faridi told 350 lawyers during its “Defending Justice” program.
More of this week’s top reads:
- “Project Greenland”: How Amazon overcame a GPU crunch.
- Tech is turning its back on Gen Z.
- How Tesla is quietly rebranding the Cybertruck.
- Less money and less security — why making partner at EY, Deloitte, PwC, and KPMG isn’t what it used to be.
- Burned out on dating apps? This startup founder says AI can help.
- Instagram’s new feature finally shows your friends what a weird little gremlin you are.
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Nvidia is the original hardcore tech company. Alums say CEO Jensen Huang’s demanding pace reigns.
The BI Today team: Steve Russolillo, chief news editor, in New York. Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Elizabeth Casolo, fellow, in Chicago.
