A safe haven asset, gold has been a reliable store of wealth for centuries. It has become increasingly valuable in recent years as investors seek reliable and tangible assets amid global economic turmoil. Gold reached an all-time high of $5,589.38 per ounce on January 28, 2026, as geopolitical tensions, trade uncertainties, and strong institutional and retail demand pushed prices sharply higher. Experts believe gold prices could continue to rise throughout the year.
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Since its discovery, gold has been viewed as a symbol of wealth. It has been used to facilitate the exchange of goods and has served as a universal form of currency. It has existed—and maintained value—longer than any modern paper currency, which is one reason many investors continue to trust gold during periods of economic uncertainty.
Long-Term Store of Value
Gold has outlasted empires and civilizations, arguably proving to be a better long-term store of value than many paper currencies. The U.S. dollar (USD), the most traded currency in the world, has been in circulation for a little more than 230 years, a relatively short period compared to gold’s long history.
During that time, the dollar’s value has been affected by inflation, monetary policy, and geopolitical events. Gold, on the other hand, has historically retained value over long periods, especially during times of political instability or banking crises.
Gold is also durable, has practical uses in electronics and other industries, and is trusted across cultures and borders.
No Government Influence
Unlike paper currencies, gold is not issued by a government. While the value of both gold and paper money can be affected by broader macroeconomic conditions, gold is not directly tied to the monetary policy decisions of any single country.
This is one reason gold often becomes especially popular during periods of inflation or economic uncertainty, with investors favoring assets viewed as more stable and less susceptible to currency devaluation.
Moreover, paper money gradually loses purchasing power over time. A $100 bill, for example, does not buy the same amount of goods and services today as it did 100 years ago.
Limited Resource
Paper currency holds value because governments and societies recognize it as a medium of exchange, but governments can also print more money when needed. Gold is different because it is a finite resource.
There is only a limited amount of gold left on earth, and much of the world’s accessible supply has already been mined. This scarcity is one of gold’s most attractive features and a key contributor to its value. Central banks recognize this as well, holding significant gold reserves to diversify their assets and hedge against inflation.
In 2024, gold was the second-largest global reserve asset, according to a report from the European Central Bank. The report documented massive stockpiling by central banks, with more than 1,000 tonnes purchased by those institutions that year alone.
In 2025, central banks continued their gold-buying spree, purchasing another 863 tonnes. While that was lower than the 2024 total, it was still almost twice the 2010-2021 average of 473 tonnes.
In addition, a 2025 World Gold Council survey found that a record 43% of participating central banks said they planned to increase their own gold reserves, while 95% believed global central bank gold reserves would continue increasing over the following 12 months. Overall, central banks now account for more than 20% of global gold demand, up from roughly 10% during the 2010s.