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Something Terrifying is Happening With Gold Prices - Video học tiếng Anh
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Something Terrifying is Happening With Gold Prices
Something Terrifying is Happening With Gold Prices
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उपशीर्षक (151)
0:00
The price of gold has skyrocketed in recent months, breaking the
0:03
$5,000 mark for the first time ever. We’ll break down why this happened and whether
0:08
gold’s value is likely to stay this high. The first and arguably easiest reason to
0:12
understand for gold’s rapid rise can be summed up in a single word: momentum.
0:16
This is the easiest reason to understand why gold is climbing.
0:19
When any asset starts performing very well in the markets, it doesn’t take long for traders
0:23
to take notice. And when assets continue to gain value over time, breaking and setting new records,
0:28
the wider world starts to take notice, too. Headlines and news reports push the story,
0:33
and with every article, more people rush in, eager to get involved.
0:36
Fear of missing out, or FOMO, begins to set in. Some people realize how much money they
0:41
might have made if they’d invested earlier. And they worry about missing out on more if
0:45
they don’t invest as soon as possible. It starts off small but gets bigger and
0:49
stronger with time, momentum rises as more and more people decide to buy.
0:53
And this drives the price up even further. We’ve seen this before - whether it be in stocks,
0:58
shares, cryptocurrencies, or commodities. And we’re seeing it again right now, with gold.
1:03
Throughout 2025 and into 2026, the precious metal’s value has soared, rising dramatically,
1:08
week after week, month after month. This is one reason gold may stay
1:11
elevated - or even become more valuable - in the weeks and months ahead, since gold
1:15
rallies have historically tended to last. Prior to 2025, in five of the six years
1:20
when gold futures rose by at least 20%, they kept rising the following year.
1:25
Because of that, momentum is one of the key forces pushing gold higher.
1:29
But there’s another major factor driving gold higher right now.
1:32
Diversification. Over the last year,
1:34
many large private and institutional investors have started diversifying their portfolios,
1:39
looking beyond stocks and shares instead of focusing on them almost exclusively.
1:43
This shift was driven in part by the sudden surge in certain stock prices,
1:47
with some reaching dramatic, record-setting highs. Tech stocks have experienced enormous increases
1:53
in recent times, with the likes of Nvidia, Tesla, and Amazon holding ever-increasing
1:57
influence over the S&P 500 index. On the one hand, these surging
2:01
stocks have delivered huge profits for investors who got in early.
2:05
On the other hand, many experts believe they can’t keep rising forever. At some point,
2:09
the bubble bursts - as it has before - and that kind of collapse can be disastrous for anyone
2:14
with too much money tied up in those assets. Analysts have been sounding the alarm over
2:18
the current tech stock boom. They’ve pointed out that the only other time
2:22
stocks reached these kinds of valuations was right before the dot-com bubble burst in 2000.
2:27
And no investor wants to be left holding the bag when it happens.
2:31
That nervousness has pushed many investors to spread their money around, and as a result,
2:35
demand for gold has surged in a relatively short period of time.
2:39
Some have been purchasing physical gold bars and coins.
2:42
Others have poured money into gold exchange-traded funds, or ETFs.
2:46
Both lead to the same end results: greater investment in gold… and a higher price tag.
2:50
This, like momentum, is one of the reasons why gold has continued to gain traction and value.
2:55
But it’s not one of the root causes behind its skyrocketing surge.
2:58
The next reasons help to explain how and why this price rise started in the first place - beginning
3:03
with the weakening value of the dollar (USD). One of the simplest ways to predict changes
3:08
in the price of gold is to watch what’s happening to the dollar.
3:11
Why? Because gold is priced in dollars.
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When the dollar weakens, gold becomes cheaper for buyers using other currencies.
3:18
It’s almost like a fire sale for anyone beyond the borders of the United States - an open invitation
3:23
to rush in and buy up as much gold as they can, as fast as they can, before its value begins to rise.
3:29
Again, this is something we’ve seen time and time again - when the US dollar weakens,
3:33
the price of gold tends to move the other way. And lately, the dollar hasn’t exactly been firing
3:37
on all cylinders. Measured against other major currencies, the USD has been on a slow but steady
3:43
slide since late 2022. It does bounce back, but those gains never seem to stick, with economic and
3:49
political pressures continuing to weigh on it. And it doesn’t look like it’ll
3:52
get any better, anytime soon. Investors are growing uneasy that Washington
3:56
could back Japan’s efforts to strengthen the Yen. At the same time, there are increasing concerns
4:01
about the Federal Reserve’s independence. Put together, it all adds another
4:04
layer of uncertainty around currency policy and makes the future value of the US dollar
4:09
harder to pin down. And when uncertainty creeps in, investors tend to gravitate
4:13
toward neutral stores of value - like gold. Next up, the reason gold is often called the
4:18
“safe haven” during global uncertainty. The world is not exactly in the
4:22
most peaceful state at the moment. The global situation feels increasingly
4:26
unpredictable, with rising political tensions, growing fears of conflict, and waves of economic
4:31
turmoil rippling through the US and beyond. In times like these, when the world feels
4:36
a little unsteady, people - investors included - naturally start looking for
4:39
stability wherever they can find it. And when it comes to investments,
4:43
gold is about as stable as it gets. It’s been trusted for thousands of years.
4:47
Gold has held its value for centuries, weathering wars and some of the most dramatic
4:51
political shifts the world has ever seen. In recent years, the conditions have put
4:55
that stability front and center. The world has seen a global pandemic and
4:58
numerous ongoing conflicts - all of which have reminded investors why gold still matters.
5:03
Experts have long warned that the value of many major currencies - including the
5:07
US dollar - as well as stocks, could be on the decline. Rising national debts, along with the
5:12
constant threat of tariffs and trade wars, are weighing heavily on economies around the world.
5:17
In other words, the foundations holding up the global financial
5:19
system seem to be starting to give way. As TD Securities’ expert investment
5:24
strategist, Daniel Ghali, puts it: “Gold’s rally is about trust. For now,
5:28
trust has bent, but hasn’t broken. If it breaks, momentum will persist for longer.”
5:33
And when trust in the system wavers, investors naturally look
5:36
for alternatives - which is why gold demand rises. But if the global situation begins to stabilize,
5:42
trust in other investments, like stocks and currencies, will likely start to return.
5:46
Another reason gold tends to gain value comes down to an issue that feels especially
5:50
relevant these days: inflation. Simply put, inflation is the
5:54
rate at which the general cost of goods and services rises over time.
5:57
And in modern systems, some level of inflation is almost inevitable.
6:01
Prices will continue to rise as the years go by, but the speed of inflation can vary.
6:06
There have been periods in history where inflation is minimal - the effects aren’t
6:09
noticeable from one year to the next. Then, there are periods where inflation
6:13
feels like it’s spiraling out of control. Average families and households struggle
6:17
to afford even the most basic and essential of goods and services, due to rising prices.
6:22
The COVID-19 pandemic led to one of those periods, with inflation in many countries across the world
6:27
surging in 2021, hitting record highs in 2022. Inflation has eased a bit in the US and other
6:33
countries, but it’s been a slow process. Prices for many goods and services are still climbing,
6:38
making everyday living more expensive for a lot of people.
6:41
When inflation runs high, people start to worry about the value of their money.
6:44
Every dollar feels weaker. And even though inflation has started to fall,
6:48
many still wonder how much their paper money and savings will actually be worth in the years ahead.
6:53
So, they look for ways to maximize the money they’ve got by investing
6:56
in assets and commodities that can increase in value more effectively and efficiently.
7:01
Like gold. Many people see gold as a way to protect
7:04
their purchasing power and avoid watching their currency lose value over time. And this is one of
7:09
the main drivers behind gold’s current rally. But there’s another factor that can be even
7:13
more impactful: interest rates. Like inflation and the US dollar,
7:17
interest rates directly influence demand for gold and its value. Unlike bonds or savings accounts,
7:22
gold doesn’t pay interest. People buy it and store it,
7:25
hoping that its value will rise in the long term in order and make them a profit. Due to this,
7:29
when interest rates are quite high, gold doesn’t have quite the same level of demand.
7:34
Instead, people tend to put their funds into savings accounts in order to guarantee themselves
7:37
a certain amount of profit every 12 months. But when interest rates start to fall or
7:42
reach lower than average levels, savings and bonds become far less
7:45
appealing - and assets like gold gain ground. In 2022, when the Federal Reserve raised interest
7:51
rates to tackle COVID-era inflation, investments like bonds and treasuries became popular choices.
7:56
But now, the US administration is working to bring interest rates down. Recent rate cuts
8:01
have reduced the yields on government bonds and cash, pushing investors away from those
8:05
assets and toward commodities like gold. At the moment, markets and investors are
8:10
largely expecting central banks to cut interest rates even further, especially with a new Federal
8:15
Reserve Chair set to take office later in 2026. If that happens, gold could become an even more
8:21
attractive option. Its potential upside far outweighs the low interest offered
8:25
by government bonds or savings accounts. Investors have been anticipating interest
8:29
rate cuts for some time. So, they’ve gotten in on the ground floor, buying up gold in advance
8:33
to maximize their returns. The more this happens,
8:36
the more gold’s price rises. According to Goldman Sachs analysts,
8:39
even a tiny 0.01% increase in private investment in gold-backed exchange trade
8:45
funds can push the price of gold up by 1.4%. The same trend is visible in other precious metals,
8:51
too. Silver recently surged past $100 an ounce, driven in part by rising demand as
8:56
interest rates around the world continue to fall. But there’s one more reason why gold has gained so
9:01
much value in such a short amount of time. And it’s perhaps the most important
9:05
one of all: the central banks. In recent months, some of the world’s biggest
9:09
central banks, from China and India to Poland and Brazil, have been buying up large amounts of gold.
9:15
They have a few reasons for doing this, but the outcome is the same:
9:18
by adding gold to their reserves, these banks diversify their holdings. This reduces their
9:23
reliance on an increasingly shaky US dollar. This represents a major shift. For many years,
9:28
central banks were actually net sellers of gold - selling more than they bought. But in 2010,
9:33
that changed. They became net buyers, accumulating more gold than they sold.
9:37
Since 2022, their purchases have grown even more, particularly following Russia’s invasion
9:42
of Ukraine. Many countries’ central banks have become increasingly aggressive in stockpiling
9:46
gold, using it to stabilize their currencies and strengthen their assets with every new purchase.
9:51
As Juan Carlos Artigas, head of research at the World Global Council, notes:
9:55
“Central banks are buying gold not just purely for its price performance, but the role it
10:00
can play in foreign reserves. Gold is very useful to hedge or diversify the reserves.”
10:04
Central banks aren’t like everyday investors - or even large private investment groups.
10:09
They have enormous spending power and can buy gold in quantities most others can only dream of.
10:14
Those massive purchases are a major driver of gold’s price rise. And
10:18
the more central banks decide to buy, the higher the price is likely to go.
10:22
For all these reasons, many experts believe gold could remain a strong and potentially profitable
10:27
investment well into 2026 and beyond. While no one can predict the markets with absolute certainty,
10:32
the current factors seem to be working in gold’s favor - ongoing political uncertainty,
10:37
strong demand, and expectations of further interest rate cuts.
10:40
And it leaves just one question: how high can gold go from here?
10:44
Now go watch ‘What If The US Economy CRASHES’. Or click on this video instead.
