Gold prices have hit a historic high, sparking talk that the metal could become the main reserve asset for central banks, pushing the US dollar down.
Gold’s Record-Breaking Rise
The international spot price of gold passed $4,500 per ounce for the first time, now sitting around $4,537.90. On the latest trading day it rose $35.10 (about 0.78%). In India, gold has jumped more than 80% this year, helped by safe‑haven buying, weaker rupee and purchases by central banks.
Expert View: Gold May Replace the Dollar
Peter Schiff, chief economist at Euro Pacific Asset Management, says the “king dollar” is losing its throne and that gold will become the primary reserve asset. He warns that this shift could cause a major decline in the dollar’s value against other currencies.
What the World Gold Council Says
- The council calls 2025 a “remarkable” year for gold, with over 50 all‑time highs recorded so far.
- Looking to 2026, it expects the price to stay volatile. Slower economic growth or falling interest rates could push gold higher, while a strong US dollar could pull it lower.
Why It Matters to Retail Investors
If central banks start holding more gold, demand could stay strong, keeping prices elevated. Investors may want to consider gold as a hedge against currency weakness, but they should also weigh the risk of price swings.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.