Why Gold Has Become the Safe Haven of Choice Again
Long ago, gold was not merely a commodity, but currency itself. From ancient Rome to 19th-century America, gold formed the foundation of transactions. As times evolved, nations gradually transitioned to fiat currency systems. Initially, these fiat currencies were backed by gold, but by the late 20th century, pure credit-based fiat systems ultimately replaced precious metal backing. Even in the fiat currency era, we have witnessed multiple monetary reforms—in 2002, Germany abandoned the Deutsche Mark, with the euro becoming the new settlement unit.
Entering the end of 2024, mounting global economic uncertainty and persistent inflationary pressures have prompted investors to increasingly turn to gold to protect assets and seek returns. This phenomenon is no coincidence: throughout 2024, gold prices surged from approximately $2,000 per ounce to $2,600 per ounce, representing a gain of nearly 30%. The driving forces behind this include elevated global debt levels, persistent inflation, escalating geopolitical tensions, and various nations' concerns regarding asset freezing...