Gold Price 2025: Why have gold prices risen so much in the past few years that even the common man's pockets are stretched thin? Is it just inflation, or is there a larger global game at play?
Why Has Gold Price Skyrocketed Over the Last Four Years? Key Factors Explained
Over the past three to four years, gold's luster has grown so much that it's no longer just a jewelry item, but a vital component of the global economy. Once a staple of festivals and weddings, this yellow metal now holds a prominent place in every investor's portfolio. Gold prices are rising so rapidly that everyone can no longer afford it. But the question remains: what's driving the ever-rising price of gold, and who is buying it in such large quantities?
Indeed, global economic instability, inflation, and geopolitical tensions have shaken markets worldwide over the past few years. Whenever economic or political uncertainty increases worldwide, people seek to secure their money.
Gold has always been considered a safe investment, which is why individuals and institutions rely on gold instead of stock market downturns.
The first major reason is inflation
When inflation rises, the value of money begins to decline. Investors prefer to invest their savings in stable assets like gold to protect them from depreciation. This is why the demand for gold continues to grow.
Another major reason is the purchase of gold by central banks:
Over the past few years, central banks in many countries have increased the share of gold in their foreign exchange reserves. For example, countries like India, China, Russia, and Turkey are consistently purchasing tons of gold to reduce their economies' dependence on the dollar.
The third reason is global political tensions
The Ukraine-Russia war, the China-US trade dispute, and instability in the Middle East have all shifted investor confidence toward gold. History shows that gold has proven to be the safest investment during every crisis, whether it was the 2008 recession or the 2020 pandemic.
Stock market fluctuations
When the stock market is volatile, people consider gold a reliable asset. Central banks are also purchasing gold on a large scale to maintain the stability of their currencies. For the average Indian, gold is not just an investment, but a symbol of tradition, security, and prestige.
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