New Gold Rush

Gold Continues Surging After Best Year Since 1979

Gold has hit a new record at $5,100 on Monday as geopolitical tensions around Venezuela, Greenland, Iran, and Ukraine boost the safe-haven asset.

This, after gold prices surged 64% in 2025, marking its strongest performance since 1979, when geopolitical shocks, double-digit inflation, and a weak dollar lifted the shiny metal more than 130%.

Safe-haven assets like gold, high-quality government bonds, and the Swiss franc are investments that are expected to retain or even increase in value during market turbulence.

Hedge Against Political and Economic Risks

So, why is gold performing so well?

• Central banks, especially in China and other emerging markets, are cutting reliance on the US dollar and rapidly increasing gold reserves.
• Gold ETFs (exchange-traded funds) are seeing strong inflows from Western investors.
• Market stress boosts safe havens: geopolitical flare‑ups are frequent, the Fed’s independence is questioned, and inflation remains sticky.
• A weaker US dollar helps: it has fallen more than 10% in a year, making gold (denominated in dollars) cheaper for global buyers.
• Gold is simple: no issuer, no credit risk, no politics.
• FOMO is real: repeated record highs keep pulling in new retail buyers.

How to Invest in Gold

There are several ways for retail investors to get involved:

• Physical gold — bars, coins, or even jewelry — gives direct ownership and no counterparty risk, but comes with storage, insurance, and higher transaction costs.
• Gold ETCs (exchange‑traded commodities) are simple products that track the gold price and trade on the stock market like a share, giving you exposure without storing metal.
• Gold mining ETFs hold a basket of gold‑mining companies, so they often rise (or fall) more than the gold price itself.
• Individual mining company stocks offer the most upside but also the most company‑specific risk. Big gold miners like Fresnillo (+29%) and Endeavour (+23%) have outperformed the gold spot price (+18%) this year so far.

What Could Go Wrong?

There’s no such thing as a one-way bet in investing.

Crowded sentiment in a hyped market can trigger sharp pullbacks. A rise in real yields or a stronger dollar can reduce demand for defensive assets. If inflation cools or geopolitical tensions ease, safe‑haven buying may fade. Margin calls can also force investors to sell their assets.

And unlike industrial metals, gold has limited practical use, so its price is ultimately supported by trust, tradition, and investor belief.

Goldman Sachs recently lifted its end-2026 price forecast to $5,400/ounce.

Other Metals See a Price Boost

Gold isn’t the only metal shining in the commodities market. Silver outperformed gold last year with a nearly 150% rally. It’s already up over 50% this year, boosted by a combination of increased industrial uses, a shortage of supply, the US adding it to the critical minerals list in November, and speculation.

Platinum and palladium are also supported by supply constraints and auto‑sector needs.

Copper continues to climb on expectations of long‑term shortages and heavy investment in electric cars and AI infrastructure.