Gold to Remain a Preferred Investment in 2025 Amid Economic Volatility: Report

New Delhi, 13 Feb – As global economic uncertainty persists, gold is expected to remain a key investment asset in 2025, according to a recent report by Aequitas Investments. The report highlights gold’s historical resilience during financial instability and its increasing role as a diversification tool for investors.

Gold as a Hedge Against Market Volatility

The report emphasizes the significance of the Gold-to-Equity ratio, a key indicator that suggests gold often outperforms equities during periods of heightened market volatility. When this ratio dips to low levels, it typically signals a shift toward gold investment, often triggered by economic crises, inflation, or stock market downturns—all of which remain relevant in today’s financial landscape.

With stock market participation at record highs, many investors are turning to gold as a safe-haven asset, providing stability in times of uncertainty. The report also points out that gold has historically served as an effective hedge against inflation, a concern that continues to impact economies worldwide.

Surging Gold Demand in India

The Indian economy is showing signs of slowdown alongside persistent high inflation, driving demand for gold to new levels. According to the report, gold holdings in Indian ETFs have nearly doubled in the past four years, reaching a record 54.5 tonnes as of October 31, 2024. This surge in demand reflects investors’ preference for tangible assets amid economic instability.

Gold Prices Continue to Rise

Gold prices in India surged on Thursday, reaching ₹88,285 per 10 grams for 24K gold. The continued upward trend in gold prices since February highlights growing investor interest in the metal.

Several factors have contributed to this price rally:

• Global economic uncertainty, fueled by trade tensions and inflation.
• Increased central bank purchases, particularly from China and India.
• Market fluctuations, leading investors to seek safer investment alternatives.

Gold: A Strong Investment for 2025

Given these factors, the report concludes that gold remains a compelling investment choice for 2025. It provides a stable, risk-adjusted return and serves as a strategic hedge against financial instability, making it an essential component of a well-balanced portfolio.

For all the latest news from Oman and GCC, follow us on Instagram, like us on Facebook & subscribe to our YouTube Channel, which is updated daily.