Gold Surges to Record High, Fueling Fears of Global Instability
Tokyo, Japan – The price of gold reached an all-time high of $4,300 on May 17th, marking a 60% increase in just one year, according to a report from TBS NEWS DIG. This rapid ascent is not confined to Japan, but reflects a global trend driven by escalating geopolitical tensions and shifting currency strategies.
Experts identify two primary factors behind the surge. The first is a confluence of three important geopolitical risks: the ongoing invasion of Ukraine, instability in the Middle East, and concerns surrounding a potential emergency in Taiwan. The second is growing uncertainty linked to potential U.S. interest rate cuts and the prospect of a second administration under Donald Trump.
This uncertainty is prompting many countries to reduce their holdings of U.S.dollars and increase their investments in gold, seeking a safe haven asset.
Central banks worldwide have been steadily increasing their gold reserves in recent years, reaching record levels.While Japan’s holdings have remained relatively stable at approximately 845 tons for the past 50 years, China and Russia have dramatically expanded their reserves.China’s gold holdings have risen from less then 400 tons in 2000 to around 2,200 tons today.Russia’s reserves have grown from approximately 340 tons in 2000 to about 2,300 tons.
This trend suggests a strategic move to prioritize gold as an asset less susceptible to economic sanctions imposed by Europe and the United States.
According to a report in Newsweek, the current surge in gold prices echoes past periods of significant upheaval. French economic commentator Arnaud Bertrand notes that similar price spikes occurred during the fall of the Roman Empire in the 3rd century,the decline of the Spanish Empire in the 17th century,and the French Revolution in the 18th century.
Bertrand argues that such rapid increases in gold prices are ”historically rare,frequently enough occurring as a harbinger of a major political shift,” and warns that “a major event that cannot be predicted may occur in the near future.”
