TORONTO— Gold has soared to record-breaking heights, surpassing US$4,000 per ounce this month and securing its position as the world’s best-performing asset of 2025. But as investors rush to join the rally, financial experts are warning that the current “gold rush” may not last.
Gold futures peaked at US$4,380 on October 20 before settling near US$4,130, marking an impressive 60% gain this year. The surge has made the precious metal a top refuge for investors unsettled by trade tensions, political uncertainty, and volatile markets. “There is something of a gold rush on at the moment,” said Adrian Ash, Director of Research at BullionVault. “Gold is the best-performing asset class of the year by far. A physical lump of rare precious metal acts as currency that doesn’t rely on any government for its value. It’s the ultimate currency in a crisis.”
Analysts say the rally reflects growing fears of economic instability and renewed trade conflicts under President Donald Trump’s second term. Since his 2024 election win, speculation over tariffs and shifting U.S. foreign policy have driven demand for gold as a hedge against global disruption. “What you’ve got now is fresh uncertainty around Trump’s policy toward China and his flip-flopping on support for Ukraine,” Ash explained. “With domestic political tension and global unease, money managers are moving heavily into gold.”
Despite its reputation as a safe-haven asset, experts caution that gold’s meteoric rise could reverse just as quickly. “Gold isn’t as stable as people think. You’re speculating that prices will keep rising, but that depends entirely on demand,” said Devin Cattelan, portfolio manager at Verecan Capital Management. “It could just as easily fall if confidence returns to the markets.” Ash agreed, advising restraint among investors caught up in the excitement. “It’s hard to see this rate of acceleration continuing much longer,” he said. “FOMO is not a good reason to invest. Take a breath before buying.”
Historically, gold performs best in times of turmoil — recessions, wars, or pandemics — when investors look for stability outside traditional markets. But during stronger economic cycles, attention often shifts to stocks, real estate, and other growth assets, leading to declines in gold prices. Analysts warn that the current rally echoes past speculative frenzies, from marijuana stocks to cryptocurrency booms, where optimism outpaced fundamentals. “Trends come and go,” Cattelan noted. “Some people make money if they time it perfectly, but many lose because they chase momentum too late.”
While gold continues to glitter as the “ultimate crisis currency,” experts agree that its record-high value reflects a world on edge rather than a guaranteed investment opportunity. As Ash summed up, “Gold is doing what it always does in times like these — shining when everything else looks uncertain. The question is, for how long?”