Beyond the Dollar: Gold, Silver and the new axis of reserve power

The year 2025 has brought unanticipated shifts in global financial markets.

- Dr. Rajiv Khosla

The New Financial Reality of 2025

Amid this volatility, gold has reasserted its dominance as a premier asset class, breaking free from traditional economic expectations. Unlike in past cycles, gold prices have shown sustained upward momentum throughout the year, emerging as a perfect hedge against the uncertainties challenging established financial paradigms.

By late October 2025, the spot price of gold surpassed $4,110 per ounce, after touching a high of $4,372 earlier in the month — marking a 57% surge from January’s level of $2,624 per ounce. Leading financial institutions such as Bank of America, HSBC, and Goldman Sachs project gold could soon reach $5,000 per ounce, driven by persistent geopolitical risks and evolving monetary frameworks.

Interestingly, this rally has occurred without conventional macroeconomic triggers like high inflation or recession. The anomaly signals deep structural changes within the global financial order — warranting a closer look into the underlying forces driving this remarkable transformation.

Gold's historic role in times of crisis

Throughout modern history, gold prices have surged during periods of political and economic upheaval, confirming its reputation as a dependable shield against instability. Three landmark episodes highlight this pattern:

The Great Depression (1933-34):

President Franklin D. Roosevelt’s Executive Order 6102 compelled citizens to sell gold at $20.67 per ounce. The subsequent Gold Reserve Act of 1934 revalued it at $35 per ounce to fight deflation, devaluing the dollar and underscoring gold’s role in preserving monetary stability even under government intervention.

The Stagflation Crisis (1979-80):