Global Gold Rush: Investors Seek Security Amid Geopolitical Turmoil

A global surge of interest in gold has emerged among investors, commonly referred to as "gold fever." However, this trend differs significantly from the gold rushes of the 19th century in the United States and Australia. Today's investors are not prospecting for gold in mines; instead, they are purchasing the precious metal as a hedge against geopolitical instability and rising inflation.

Since the onset of Russia's military aggression in Ukraine over the past two and a half years, demand for investment gold has steadily increased worldwide. This trend includes a diverse range of investors, from major governments to individuals investing a few thousand dollars in gold. As a result, the market price of gold has been on the rise, with a reported increase of over 25 percent since the beginning of 2024, reaching more than 2,700 dollars per troy ounce, according to data from the specialized platform "Investing," cited by BTA.

Despite this bullish trend, not all investors are convinced that gold is a reliable safeguard against money depreciation during inflationary periods. This year, gold prices have risen alongside decreasing inflation rates. Following the Russian invasion of Ukraine in early 2022, when consumer prices soared in Europe and the US, gold initially reached over 2,050 dollars per troy ounce. However, its value subsequently fell to below 1,650 dollars per troy ounce by early October of the same year, even as inflation continued to climb.

Some investors argue that the optimal time to purchase investment gold is not during periods of rising inflation but rather when central banks start lowering their key interest rates. They suggest that gold becomes more appealing when returns on bonds and bank deposits diminish, as highlighted by the...