Gold prices have reached their highest level in history. But experts warn that this record-breaking rise might not be good news for the global economy.
Financial analysts believe that people are not buying gold just for profit anymore. According to Indian financial expert Himanshu Pandey, big investors like central banks, institutional buyers, and sovereign funds are purchasing gold to protect their wealth, not just to earn returns.
Pandey explained that this growing demand for gold shows signs of economic uncertainty. He compared the situation to the oil crisis of the 1970s, when a sudden spike in oil prices caused major global economic instability.
“In today’s time, gold is no longer just a shield against inflation,” Pandey said. “It has become a powerful investment option that also provides returns.”
In 2025, gold has already given nearly 51 percent returns.
Over the last five years, its value has more than doubled a growth rate of about 24 percent annually.
In 1973, the Arab-Israeli war led to oil supply cuts from the Middle East. Oil prices jumped four times higher, pushing the world into inflation and economic chaos.
Experts say the current gold surge is sending a similar warning sign that the world economy could be heading toward another period of pressure and uncertainty.
