Why is the price of gold continuing to hit record highs? - Considering the historical context and the characteristics of gold

In October 2025, news broke that the price of gold had once again reached an all-time high.
Interest in gold as a "safe asset" is growing among investors, and buying by individual investors also seems to be accelerating. (I have also included it in a portion of my own portfolio.)

But why is gold continuing to rise now?
In an era where AI and technology are dominating the market,why is this "old and heavy asset" back in the spotlight?
I would like to organize the background behind this a little.

1. A "symbol of value" that has continued since ancient times

The history of gold is extremely long, dating back to civilizations before the Common Era.
Because gold does not corrode and retains its luster even when reshaped, it was even called the "flesh of the gods" in ancient Egypt.

As we entered the modern era, the "gold standard" was established as the foundation for the currency systems of various countries.
In other words, it was a mechanism where the value of issued banknotes was backed by gold holdings.

However, in 1971, U.S. President Richard Nixon suspended the convertibility of the dollar into gold.
The "gold standard" ended, and the world shifted to an era of fiat currency.

Even so, for some reason, people continue to believe in the "value of gold."
It is not paper money or cryptocurrency, but gold as something to rely on in the end.
This psychological trust is what makes gold a special existence.

2. Why is gold rising now?

(1) The desire of various countries to reduce their dependence on the dollar

Central banks around the world have been increasing their gold holdings in recent years.
Especially in emerging countries, there is a growing movement to "break away from excessive dependence on the dollar."

The dollar remains the world's reserve currency, but its value is often shaken by U.S. interest rate policies and geopolitical risks.
Amidst this, gold is being re-evaluated as an "internationally neutral insurance of value."

(2) Rising geopolitical risks

Ukraine, the Middle East, East Asia—unstable situations continue in various parts of the world.
When wars or political conflicts occur, stocks and currencies become unstable.
At such times, funds flow toward gold, which is a "safe haven" asset.

In other words, it is a structure where when the total amount of global anxiety rises, the price of gold also rises.

(3) The balance between inflation and interest rates

Another factor is the relationship between inflation and interest rates.
Gold is an asset that does not generate interest.
Even so, people buy gold because they feel that "the value of currency is falling."

When signs appear that the Federal Reserve (FRB) will lower policy interest rates,
investors move to "hold gold rather than dollars."
The accumulation of such psychology is fueling the rise in gold prices.

3. Characteristics of gold - An asset for "protecting value"

Gold does not support growing companies like stocks.
Also, it does not generate yields like real estate.

Even so, people seek gold because it has the "power to protect value."

• It does not decay (physical permanence)

• It does not depend on the credit of nations or corporations (political neutrality)

• It is understood by everyone (universal value)

These three factors make gold a special asset.

And interestingly, the more technology evolves, the more the question of "what do humans believe in?" resurfaces.

4. My own experience - Not for anxiety, but for balance

I have been accumulating gold myself since 2019.
As of today, my assets have grown to about 2.6 times their value, a return of +160%.

However, the reason I bought gold was not out of "anxiety about the future."
It was more about its role as a "counter-asset" in my portfolio to neutralize the risk of being overly concentrated in US stocks and investment trusts.

Not to avoid anxiety, but to hold gold to organize the structure.
I feel this sentiment symbolizes the "form of trust" in the current era.

5. History repeats itself - When gold rises, it is a "reflection of anxiety"

Looking back at the past, periods when gold rose were always times when the world was shaken.

• 1970s: Oil shocks and inflation

• 2008: Lehman Shock

• 2020s: Pandemic and geopolitical risks

Gold rises not because the economy is good, but because
**"people cannot be certain about the future."**

6. Conclusion - When credit is shaken, people choose gold

Ultimately, the fact that the price of gold is rising means that the world is being asked again, "what is credit?"

Now that technology is evolving and AI is beginning to dominate the economy, people may be starting to seek "trust" rather than "data."