GOLD AND SILVER : THE ETERNAL GUARDIANS OF WEALTH

Gold has been valued by humankind since ancient times for its beauty, rarity and durability. The earliest evidence of gold use dates back to around 4000 BCE in ancient Mesopotamia and Egypt, where it symbolized power and divinity. Egyptian pharaohs were buried with gold ornaments, and it became a symbol of eternal life. Around 560 BCE, the Lydians in present day Turkey issued the first gold coins, introducing its use as money. During the Roman Empire, gold played a significant role in trade and the expansion of wealth. In the 16th century, Spanish explorers brought massive quantity of gold from America to Europe, transforming global economies. Later, 19th century gold rushes in California, Australia, and South Africa fueled migration and development. Gold is considered precious for several reasons that combine its natural, economic and cultural value. First, its rarity makes it valuable, it is scarce in the Earth’s crust and difficult to mine, which limits its supply. Second, gold has unique physical properties, it doesn’t rust, tarnish or corrode, making it virtually indestructible. Its bright attractive colour and easy malleability allow it to be shaped into fine jewelry and art.

Today, gold remains a global standard of wealth, used in jewelry, investment, technology, and central bank reserves, continuing its legacy as one of humanity’s most prized metals. It is globally recognized and easily traded, giving it universal appeal. Culturally gold symbolizes wealth, success, and purity, often associated with gods, royalty, and celebrations. Its enduring beauty and stability make it a timeless asset. Thus, gold’s combination of rarity, durability, beauty, and trust has made it one of the most precious and sought-after materials in human history. The world’s top gold producing countries are China, Australia, Russia, Canada, and America. India’s gold production is quite low compared to its demand and relative to the world’s leading producers. India is better known for its high gold consumption and reserve than production.

Silver 
Silver’s history is equally ancient, with use traced to 3000 BCE, in Mesopotamia and Egypt. It was often used alongside gold in jewelry, coins and utensils. By 600 BCE silver became widely used as currency in Greece and later in Rome. Unlike gold, silver was more abundant and used for everyday trade, while gold remained a symbol of wealth and prestige. Today silver is used in electronics, solar panels, medicines, jewelry, and investment, blending industrial and monetary value.



Gold as Investment
Gold is generally considered a safe and stable investment, especially for preserving wealth and reducing financial risk. Its value tends to remain stable or rise during times of economic uncertainty, inflation, or currency depreciation, making it a reliable safe heaven asset. During market crashes, wars, or recessions, investors often move to gold for security. Consistent demand from central banks, jewelry markets, and investors supports its long term value. Gold can be easily bought or sold worldwide.

However, gold does not generate interest or dividends (except through the SGB), and its short term price can fluctuate. Therefore, it is best viewed as long-term store of value rather than a quick-profit investment. Most financial experts recommend holding around 10% of one’s investment portfolio in gold to ensure stability and protection against economic shocks.

Rates
In USD terms, the gold has gone from around $425 per ounce in 2005 to approximately $4200 per ounce in 2025. In India, gold prices have surged from about Rs.72000 in September 2024 to roughly Rs.130000 (per 10 gm) in October 2025, reaching record highs driven by inflation, interest rate expectations, and geopolitical risks.
Silver has shown a similar trend, rising from about USD 7 per troy ounce (31.1 grams) in 2005 to USD 52/ troy ounce in 2025. In India, silver prices have climbed from Rs.11000 per Kg in 2005 to about Rs.150000 per kg in 2025. In past one year alone, from Diwali-to-Diwali, gold and silver have appreciated by approximately 58% and 60% respectively, gold glittered but silver shone brighter. The recent surge has been driven largely due to currency depreciation, increased demand, and supply constraints. Silver prices, however, tend to fluctuate more sharply than gold.  

Price Rise and Key Drivers
Gold and silver prices are rising due to a combination of global economic, geopolitical, and market factors. One major reason is economic uncertainty. When inflation is high or currencies lose values, investors seek gold as safe and stable store of wealth. In recent years, inflationary pressures, trade tensions, and fluctuating oil prices have pushed more investors toward precious metals. 

Another factor is geopolitical instability, such as wars and conflicts, in the Middle East and Eastern Europe. Such tensions often make investors wary of holding paper assets, prompting them to move funds into gold, which traditionally retains value during crisis.

Central banks have also increased their gold purchase to diversify their reserves and reduce reliance on the U.S. dollar, further boosting demand. Additionally, interest rate trends play a key role, when the rates are low or expected to fall, the opportunity cost of holding gold decreases, making it more attractive. Finally, rising demand from countries like India and China, both for jewelry and investment purposes, contributes to higher prices. With limited new supply from mining and growing global demand, prices naturally continue to climb.

Conclusion
The continuous and steep rise in gold and silver prices reflects the global search for financial safety amid uncertainty, inflation, and geopolitical risks. Ongoing conflicts between Hamas and Israel, Russia and Ukraine, and tension involving India, Pakistan and Afghanistan, Pakistan have contributed to investor uncertainty. Such conditions reaffirm gold’s centuries-old reputation as a secure and reliable asset in turbulent times. India has significantly increased its official (central bank) gold reserves to about 880 tonnes, ranking 8th globally, while the USA leads with around 8100 tonnes. In Indian markets, the customers are increasingly inclined toward bullion rather than jewelry, indicating a shift toward long term investments. Experts are divided on the future price trend, some anticipate minor corrections, while others predict gold soon reaching $5000/ounce. Regardless of short-term fluctuations, gold remains an all-weather investment and a timeless symbol of stability and trust.  






By Manoj Dubey
(The content of this article reflects the views of writer and contributor, not necessarily those of the publisher and editor. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New 
Delhi only)