Gold has been viewed as a safe-haven asset for centuries, a role that is unlikely to change anytime soon. By its very nature, the precious metal asset holds store of value and is a hedge against volatility as a so-called safe and stable investment, in addition to providing protection against inflation. The current weakening of the US dollar only reinforces this.
The precious metal is also a tangible asset, very different from cryptocurrencies such as Bitcoin – with the latter seen as a speculative asset that is far more volatile.
Taking this into consideration, it comes as no surprise that interest and investment in gold continues to soar as political and economic uncertainty continues. The tangibility of gold and its long-standing position as a safe-haven asset can provide greater confidence to those looking to invest, compared to digital assets. Increased demand for gold suggests that there is a decreased appetite for assets or instruments that may be seen as riskier in terms of investment.
Intertwined with soaring demand is the ever-increasing price of gold. As a safe-haven asset, shifting gold prices typically reflect the market view of potential risks. Rising gold prices reflect market concerns about current global uncertainty – be it political or economic, although the two are likewise entangled. Gold prices briefly climbed above $3,500 a troy ounce earlier this week, sitting at around $3,340 at the time of writing. Although falling from its peak, the price of gold is still well above that of a year, or even six months, ago.
An early example of the impact of elevated gold prices can be seen in the sale of Zimbabwe’s Mosi-oa-Tunya 22 carat gold coins earlier this year, which sold for a record $3,018.38 in February. The coins were originally introduced by the Reserve Bank in an attempt to counteract spiralling inflation, in the context of local currency instability and a preference for utilising the US dollar.
Another point of interest lies with the precious metal coin and bullion sector, with the value of gold, silver, or even platinum collectibles and investment pieces unmistakably affected by the current demand for and price of precious metals.
Questions have also been raised about the impact of shifting US tariff policies upon the investors and collectors who intend to purchase these products – particularly from outside the United States, but also if shipping them elsewhere.
A new gold ATM has been introduced in a Shanghai mall that melts gold items, checks their purity and weight, and transfers the equivalent value to the user’s bank account within 30 minutes – with no paperwork required. Its popularity with shoppers and residents has been attributed to the rapid rise in gold prices.
The Bavarian State Mint has developed the Bayern Thaler as a hybrid between an investment asset and a collectible, providing a new German-specific bullion product similar to the well-established Britannia, Maple Leaf, or Krugerrand. Increasing global demand for physical precious metals facilitated the decision to produce the new bullion coins, said the Mint, in addition to offering a homegrown alternative to German investors.
Shifting focus to a combination of both the physical and digital, the tokenisation of real-world assets (RWA) such as gold is currently under discussion in South Korea. A Digital Asset Framework Act is currently under preparation, aiming to establish a stronger legal base for the digital asset ecosystem and regulate the issuance, trading, and disclosure of virtual assets.
State-owned KOMSCO is also exploring the tokenisation of gold, which would provide a digital representation of the RWA.
Whilst the sharp rise in gold prices is more recent, soaring almost 31% so far in 2025, it has been steadily increasing for well over a year now. Several central banks have been increasingly purchasing gold as a strategic reserve, including those in Poland, Hungary, India, and China, to name a few examples.
Although difficult to estimate how all of the factors discussed here will play out – geopolitical uncertainty chief amongst these – it appears highly unlikely that either gold demand or price will suddenly plummet. It seems that the new gold prices are here to stay, as is the soaring demand for precious metal investments as safe-haven assets.
