Gold is once again at the center of global portfolios. With prices hovering near $4,500/oz, bullion has risen more than 70% this year — its strongest annual performance since 1979.
This rally is not speculative hype alone. It reflects a structural shift in how investors, institutions, and central banks think about risk, currency, and capital preservation.
How Investors Gain Exposure to Gold
1️⃣ Spot Market (OTC)
Institutional investors typically buy physical gold through major banks in the over-the-counter market, with London Bullion Market Association acting as the global standard-setter.
London remains the dominant pricing hub, alongside China, India, the Middle East, and the U.S.
2️⃣ Futures Market
Gold futures allow leveraged exposure and hedging:
- COMEX (New York) – the world’s largest gold futures venue
- Shanghai Futures Exchange
- Tokyo Commodity Exchange (TOCOM)
3️⃣ Exchange-Traded Funds (ETFs)
Physically backed gold ETFs have become a core allocation tool:
- $64 billion in net inflows YTD
- $17.3 billion in September alone, a record month
(Data: World Gold Council)
4️⃣ Physical Bars & Coins
Still favored by retail investors and high-net-worth individuals seeking direct ownership without counterparty risk.
What’s Fueling Gold’s Surge?
🔹 Monetary Policy
Expectations of looser U.S. monetary policy reduce the opportunity cost of holding non-yielding assets like gold.
🔹 Geopolitical & Trade Tensions
Escalating tariffs, currency volatility, and global fragmentation reinforce gold’s role as a safe-haven asset.
🔹 Currency Hedging & De-Dollarisation
Gold continues to benefit from concerns over fiat currency debasement and dollar concentration risk.
🔹 Central Bank Buying
Central banks remain persistent buyers:
- Global gold demand hit a record 1,313 tonnes in Q3 2025
- China has added gold to its reserves for 13 consecutive months
The Bigger Picture
Gold’s rally is not just a crisis trade.
It reflects a re-pricing of monetary credibility, geopolitical risk, and portfolio resilience.
In a world of:
- Higher structural inflation risk
- Rising sovereign debt
- Fragmented global trade
- Multipolar currencies
Gold is no longer a tactical hedge — it is becoming a strategic allocation.