Gold shops in China |
Warning due to the "gold frenzy"... you could lose everything!
Despite the declines in gold prices over the past two days, the world is still witnessing an unprecedented wave of demand for the yellow metal, with prices expected to continue rising to record levels in the coming period. Dozens of videos on social media showed people lining up outside gold shops in countries such as Singapore, Australia, and Japan, in a scene described by international media as a "gold rush."
In a new phenomenon, the younger generation is becoming more interested in purchasing gold, whether through traditional jewelry or investing in "digital gold."
According to World Gold Council Chairman Xu Kaifan, the global market is witnessing increasing entry from younger investors who are buying gold even for small amounts.
In its latest report, the Council asserts that the world is experiencing what can be described as a "new golden age," and that the future of the yellow metal is now linked to digital trading platforms that facilitate access to gold as a global investment asset.
Global inflation and "investment fear"
On social media, analysts and content creators are repeatedly advising against selling gold at this stage.
Content creator Wissam said in a widely circulated clip: "Never sell your gold... Inflation is unforgiving, and currencies are losing value, but gold proves every day that it is the safest investment."
This rhetoric reflects the fear of losing the purchasing power of money amid rising inflation and declining currencies, which prompts individuals to secure their savings by purchasing physical gold.
Physical or digital gold?
Economic expert Ahmed Fahim explained to Al Arabiya that the current demand is noticeably focused on buying bullion rather than jewelry, reflecting a genuine, rather than seasonal, investment motive.Fahim said, "Physical gold represents the option for long-term savers, while digital gold is more suitable for investors seeking quick profits through online trading."
He added that the difference between the two types of gold is similar to the difference between a saver and an investor, explaining that digital gold has become a global reality that cannot be ignored. However, it requires reliable and accredited platforms like those in the United States and some Gulf countries, including Saudi Arabia, which has begun offering this type of investment service through its banks.
Warnings about fake platforms
Fahim warned against fake digital platforms circulating online that exploit the enthusiasm of new investors, noting that some of these entities impose hidden fees or high commissions when withdrawing or selling gold.He advised investors to carefully read the terms and conditions before engaging with any digital trading platform, especially in light of the growing cyber fraud associated with virtual assets.
Does the demand herald a global crisis?
Videos from Japan show long lines outside gold shops after the price of an ounce exceeded $4,000 for the first time since 1979. This has prompted some experts, such as content creator Omar Ismail, to warn that this rush could be an indicator of escalating global economic concerns.Analysts believe that the shift from currencies to gold reflects a loss of confidence in the stability of financial markets, potentially opening the door to a new era in which gold becomes the "last resort" for investors and individuals.
Gold between security and digitization
Despite differing opinions, it appears that the world today stands at a historic turning point in humanity's relationship with gold.While bullion and jewelry remain a symbol of security and tangible ownership, digital gold opens new horizons for easy and fast investment in the era of financial technology.
With inflation and currency fluctuations continuing, the yellow metal appears to be poised for a new golden age that combines authenticity and digitalization.
2 Comments
Everyone’s going crazy over gold lately feels like a modern gold rush!
ReplyDeleteGold’s booming, but gotta be careful not every platform is legit
ReplyDelete