Gold Prices Surge to Record High in 2025 as Investors Seek Safe Haven
Gold prices have soared in 2025, marking their highest increase since the 1970s. The precious metal is now trading at US$4000 (NZ$6900) an ounce, reflecting a growing distrust in governments' economic policies and a surge in retail and central bank investments.
Gold's price action mirrors rising discontent among investors. Retail investors have been snapping up physical gold, with over 98% holding for the long term. Central banks, too, have been increasing their gold reserves significantly. This trend is particularly evident in emerging markets, driven by geopolitical tensions and inflation concerns. Notable buyers include China and Russia, who have been diversifying their currency reserves away from the US dollar.
The rise of exchange-traded funds (ETFs) has also made gold more accessible to institutional investors. This, coupled with solid fundamentals and fear of missing out (FOMO), has contributed to gold's recent surge. Gold has long been recognised as a store of wealth and an established asset class, making it an attractive option for diversified portfolios.
Gold prices have surged 50% in 2025, reaching US$4000 (NZ$6900) an ounce. This rally, the biggest since the 1970s, is driven by retail and central bank investments, geopolitical tensions, and inflation concerns. Gold's status as a store of wealth and its accessibility through ETFs make it an appealing option for investors seeking diversification and protection against economic uncertainties.
