{"id":2404,"date":"2025-10-21T15:29:14","date_gmt":"2025-10-21T15:29:14","guid":{"rendered":"https:\/\/www.worldpumpnews.com\/?p=2404"},"modified":"2025-10-21T15:29:14","modified_gmt":"2025-10-21T15:29:14","slug":"gold-is-the-ultimate-currency-in-a-crisis-does-that-mean-you-should-buy-national","status":"publish","type":"post","link":"https:\/\/www.worldpumpnews.com\/?p=2404","title":{"rendered":"Gold is \u2018the ultimate currency in a crisis.\u2019 Does that mean you should buy? – National"},"content":{"rendered":"

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The price of gold continues to rise, with the gleaming metal again catching investor attention around the world over recent weeks. But what\u2019s fuelling the new \u201cgold rush?\u201d<\/p>\n

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The value of gold has been rising since the pandemic, and especially within the past few months, when it set a new record on several occasions.<\/p>\n

On Oct. 7, the main gold futures price went above US$4,000 an ounce for the first time, and reached an all-time high of roughly $4,380 on Oct. 20. As of publication, the price was hovering around $4,130.<\/p>\n

So far in 2025, gold futures have grown in value by about 60 per cent and that may leave some wondering if now is the time to buy.<\/p>\n

\u201cThere is something of a gold rush on at the moment. Gold, in the fall of 2025, is the best performing asset class of the year by far, alongside other precious metals like silver and platinum,\u201d says Adrian Ash, director of research at gold buying and selling platform Bullion Vault.<\/p>\n

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\u201cA physical lump of rare precious metal acts as currency that doesn\u2019t rely on any government survival or any regime or jurisdictions or legal permanence and continuity for it to hold value.\u201d<\/p>\n

Ash goes on to say gold is \u201cthe ultimate currency in a crisis,\u201d and how in recent weeks, \u201cwe are looking at a real kind of \u2018crisis\u2019 sized move into gold by investors.\u201d<\/em><\/p>\n

So what\u2019s driving the value right now?<\/p>\n

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\n\t\t\t\tWhat’s behind the new ‘gold rush’?\t\t\t<\/h2>\n<\/p><\/div>\n

Supply and demand is one of the main factors that drive the price of gold, meaning the more that buyers want to purchase the metal for any reason, the higher its price becomes.<\/p>\n

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Gold\u2019s value is measured most often based on the price it is expected to reach within the next few months \u2014 known as gold futures. This factors in levels of supply and demand based on current trends, as well as geopolitical risks, and economic gauges, including inflation.<\/p>\n

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\u201cWith gold, you\u2019re essentially speculating that the price will go up long-term. Trying to determine that is a bit of a guessing game because we don\u2019t know if demand will go up with time \u2014 it could be a short-term trend that changes,\u201d says Devin Cattelan, a portfolio manager with Verecan Capital Management.<\/p>\n

\u201cGold isn\u2019t something that safe and stable as an investment because it does fluctuate over time.\u201d<\/p>\n

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Historically, Ash says gold tends to do better in more uncertain and volatile economic times because it isn\u2019t as exposed to economic risks, while stronger periods for the global economy may encourage investors to purchase stocks, real estate and other assets and drive the value of gold down.<\/p>\n

This is because, in theory, gold will hold its value better during economic downturns like a recession, pandemic, or geopolitical events like a war \u2014 or a pandemic.<\/p>\n

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\u201cThe pandemic was a very hot period for gold. Gold really came into its own as a store of value when the global economy shut down,\u201d Ash says.<\/p>\n

Ash also says that although gold has been on a steady rise over the past few decades, the recent spike in prices dates back mostly to last fall.<\/p>\n