Gold prices surged to a new all-time high of $3,720 per ounce during trading on Sept. 16. Analysts caution, however, that despite the metal’s rapid rise, investors should weigh the risks before jumping in.
The real value of gold
Independent financial analyst Aman Alimbayev noted that while gold has repeatedly set nominal price records, its inflation-adjusted value tells a different story. The previous real record dates back to the 1980s, when inflation and geopolitical tensions pushed gold to $850 per ounce, the equivalent of about $3,590 today.
Is gold a good investment?
Alimbayev stressed that gold serves primarily as a store of value rather than a driver of long-term growth. Unlike stocks or bonds, gold’s inflation-adjusted returns over time are unpredictable. He warned that investors should avoid relying on a single asset class, no matter how stable or profitable it may seem, because some markets can remain in negative territory for decades.
Notably, the latest rally reflects mounting concerns over the U.S. economy. Investors are turning to the precious metal as a hedge against inflation and currency weakness. If stock markets stumble, analysts expect gold prices to climb even further. The metal has already gained nearly 40% in 2025.
