Is the Rise of Gold a Bubble? Experts Respond

Reasons for the Recent Rise in Gold Prices

In the past two months, the unstoppable rise in gold prices has become a topic of curiosity among investors and market analysts. Many countries have halted gold bullion sales, while investors continue to seek the safe-haven property of this precious metal. Market experts have begun to analyze the dynamics behind this rise.

The Rise is Not a Bubble, But Risks Exist

Currency market expert Mehmet Ali Yıldırımtürk emphasizes that the rise in gold is not a bubble, while noting that uncertainties about how high prices can go continue. Yıldırımtürk points to the gold movements between 1972-1978 as an example, stating, “During those times, there was a tight connection between gold and the dollar. However, once the dollar was removed from being backed by gold, prices exploded. A similar situation is present today,” he said.

Geopolitical Risks and the Global Economy

Yıldırımtürk states that the increasing geopolitical risks, expectations of a weak dollar, and fractures in the global monetary system have led Asian and European central banks to shift their reserves from dollars to gold. “This situation positions gold not only as an investment tool but also as collateral for the new system,” he says.

Rising Interest from Individual Investors

As individual investors turn to gold, citizens in the US, UK, and Germany are buying gold to protect their assets. Yıldırımtürk emphasizes the strong demand for gold and the limited supply: “While the number of people wanting to buy gold is increasing, those who want to sell are decreasing. This situation has also led to increased interest in gold within the financial system,” he adds.

Expert Recommendations for Investors

The expert stresses that a medium- to long-term approach should be adopted in gold investment. Yıldırımtürk suggests, “It is not right to invest all savings in gold. For example, a distribution of 40% gold, 30% medium- to long-term stocks can be preferred.”

Conclusion

Possible short-term price corrections may provide investors with opportunities to buy at lower levels than the current prices. However, gold is always available in the market, and investors are making efforts to make strategic moves to protect their values.