Gold Surges to Record High, Fueling Fears of Global Instability
Tokyo, Japan – The priceโ of gold reached an all-timeโฃ high โฃof $4,300โฃ onโค May 17th, marking a 60% increase in justโ one year,โ according toโ aโ report from TBS NEWS โฃDIG. This โคrapid ascent is not confined โto Japan, but reflects a global trend driven by escalating geopoliticalโข tensions and shiftingโ currency strategies.
Experts identify two primary factors behind the โsurge. The first โคis a confluence of three โimportant geopolitical risks: โthe ongoing invasion โฃof Ukraine, โinstability in the Middle East, โandโข concerns surrounding โฃa potentialโ emergency โคin Taiwan. The second is growing uncertainty linked to potential U.S. interest rate cuts โand the prospect of a second administration underโข Donald Trump.
This uncertainty is prompting manyโข countries โคto reduce their holdingsโ of โU.S.dollars and increase โtheir investments in โgold, seeking a safeโ havenโค asset.
Central โขbanks worldwideโค have been steadily increasing their gold reserves โin recent years, reaching record levels.While Japan’sโค holdings โhave remained โฃrelatively stable at approximately 845 tons for โthe past 50 years, โคChina and Russia โhave dramatically expanded their reserves.China’sโข gold holdings have risen from less then 400 tons in 2000 โto around 2,200 tons today.Russia’s reserves have grown from โapproximately 340 tons inโ 2000 toโ aboutโข 2,300 tons.
This trend โฃsuggests a strategic move to prioritize gold as an asset less susceptibleโฃ toโข economic sanctions imposed by Europe andโ the United โคStates.
According to aโ report in Newsweek, the current surgeโ in โgold prices echoesโข past periods of โฃsignificant upheaval. French economic commentator Arnaud Bertrand notes thatโ similar price spikes โoccurred during the fall โof the Roman Empire in the 3rd century,the decline ofโ the Spanishโ Empire in the 17th century,and the French Revolution in theโ 18thโข century.
Bertrand argues โฃthat suchโค rapid increases in gold prices are โ”historically rare,frequently enough occurring โas a harbinger of a โฃmajor political shift,” โand warns that “a major event that cannot be predicted may occur in the near future.”
