HouseTrip co-founder Arnaud Bertrand, on Tuesday, warned that the sharp rise in gold prices is a rare and big warning sign. According to the entrepreneur, the trend is an indication that people are losing trust in the money system and the political order.
“I was studying other times in history when gold prices more than doubled in the reserve currency of the time, as they did in the past year: it's rare and almost always a sign of a profound loss of confidence in the existing monetary and political order, going all the way back to the Roman empire (the so-called 'Crisis of the Third Century'),” he said in a post on X.
Bertrand's comments came as gold surged past $4,000 an ounce, hitting a record high. Amid wider global economic uncertainty, investors are seeking safety, leading to increased demand for gold. Spot gold is up 53% this year after a 27% gain in 2024.
In his post, Bertrand noted examples such as the fall of Rome, the French Revolution, and the end of Bretton Woods. He said that in those moments, gold went up fast, and a major change followed.
I was studying other times in history when gold prices more than doubled in the reserve currency of the time, as they did in the past year: it's rare and almost always a sign of a profound loss of confidence in the existing monetary and political order, going all the way back to… https://t.co/M3reToeQ1d
“And it often marked the transition from one era of power to the next: the fall of Rome, Spain's decline from world power, the French Revolution and Terror, the end of Bretton Woods etc,” he added.
Bertrand also explained that rising gold is not just a sign, but part of the problem. It moves wealth to the rich, while the poor lose out.
“Interestingly, it's often actually as much a cause as a sign of these episodes, as this is effectively a transfer of real wealth from the poor to the rich elites who protect themselves with gold….this being what ignites the political upheaval,” his post further read.
According to Bertrand, the “weird aspect” of the current episode is the “relative silence” around it. “We're witnessing what may be one of the great pivotal moments in financial history, yet it's being barely discussed,” the entrepreneur added.
Gold Outlook
“Rising uncertainty levels tend to fuel gains in the gold price, and we are seeing this theme play out again,” KCM Trade Chief Market Analyst Tim Waterer told Reuters. He said investors were turning to gold as a haven amid growing economic and geopolitical risks.
Analysts also pointed to a strong “fear of missing out” driving momentum as prices climb. However, the rally may face short-term pressure, with some investors tempted to take profits now that gold has crossed the symbolic $4,000 mark.
According to Anuj Gupta, director of YA Wealth Global, gold spot prices have spiked to a new record high, touching $4,000 per ounce. He said strong investment demand is being driven by ongoing political upheaval, global economic uncertainty and hopes for further US interest rate cuts.
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