When the world feels dangerous or uncertain, many investors run to gold. That pattern became especially strong in 2025 and early 2026. The World Gold Council says gold set 53 all-time price records in 2025, and total demand rose above 5,000 tonnes for the first time. Then, on January 26, 2026, AP reported that gold briefly moved above $5,100 per ounce, another sign that the rally did not stop when the calendar changed. (gold.org)
Why is gold so popular now? The short answer is fear. According to AP, investors have been worried about tariffs, inflation, political conflict, and large government debt. In times like this, gold looks attractive because it is seen as a “safe haven” asset that may hold its value better than riskier investments. This mood has not been limited to gold alone: silver also surged during the same period, showing that demand for precious metals has been wide and intense. (apnews.com)
The numbers behind the boom are striking. In 2025, global gold investment demand jumped 84% to 2,175 tonnes, while gold-backed ETFs added 801 tonnes. Central banks also bought 863 tonnes, a very high level by historical standards. At the same time, high prices pushed many ordinary buyers away from jewellery: jewellery consumption fell 18% by volume, even though the total value of jewellery sales reached a record $172 billion because the metal itself was so expensive. (gold.org)
So, will the “safe asset” boom continue? Probably yes in the near term, but not in a straight line. The World Gold Council expects geopolitics, central bank buying, and strong ETF demand to keep supporting gold in 2026. Still, gold is not a one-way bet. AP noted that in October 2025, after hitting a record, gold suffered its biggest one-day drop since 2011. In other words, gold may remain a star, but even stars can shake. (gold.org)
