Kathmandu. The price of gold is increasing day by day. Those who invest in it are happy. But those who don’t are regretting it.
In fact, the price of gold is increasing one-sidedly. In 2025, gold is already 60 percent more expensive. The global price of gold has crossed $ 4,000 per ounce. Experts are now saying that even this high price is not risk-free.
Chartered Financial Analyst (CFA) Himanshu Pandya has warned people about the unprecedented rise in gold prices. He believes that the continuous rise in the price of gold cannot be a positive sign. This should be seen as a warning sign.
According to Himanshu Pandya, it would not be right to attribute the rise in gold prices only to profits. “There is fear and uncertainty behind this,” he said, adding that central banks, sovereign funds and institutional investors are currently buying the most gold. They are not buying gold in the hope of making a profit, but to protect their portfolios. This means that central banks are also turning to gold for safety. So you could say that when governments buy gold at record highs, they’re not chasing profits. It indicates something deeper. ’
In a post on LinkedIn, Himanshu Pandya described the recent surge in gold prices a few months ago as “unimaginable”. He compared it to the oil crisis of the 1970s. However, he admits that the current situation is completely different from what it was in the 1970s. He compared the oil crisis to the 1970s, saying the boom was not “normal”.
Pandya also said that gold is no longer just a hedge against inflation, but also a matter of returns. However, it reflects a lack of trust in the financial system, credibility and the monetary system associated with it.
In the last five years, gold has given almost 200 percent returns. Its price has almost tripled in 5 years. It averages 24 percent per year.
What is the oil shock of the 1970s?
Before 1973, most countries in the world were dependent on Middle Eastern oil. At that time, oil prices were very low and economic growth was rapid. The economies of countries such as the United States, Europe and Japan depended on this cheap oil.
In October 1973, the Arab–Israeli War began. The United States and Western countries were supporting Israel in this war. In protest, the Arab members of OPEC (Organization of the Petroleum Exporting Countries) stopped selling oil to the US and its allies. Within a few months, the price of oil quadrupled, from $3 to $12 a barrel. This led to global inflation and unemployment.
The “oil shock” of the 1970s became one of the biggest warnings in the history of the global economy.
