Nicky Shields, director of precious metals investment strategy at BBC, explains that the price of gold has risen significantly in recent months mks pump group, In an interview with DW.
“It is an indication of a loss of confidence in governments and institutions.” He adds that the question is whether a relatively small market, such as gold funds, can absorb the current flood of capital.
Headquartered in Geneva, MKS Pump Set It is one of the major players in the global precious metals industry. It processes gold, silver and platinum and turns them into bullion, coins and products for the jewelry and industrial sectors, and provides investment options for institutional and individual clients.
“Gold on Paper”: The Market’s Stellar Bet
According to the World Gold Council, ETFs (exchange traded funds) Gold — exchange-traded funds that track the price of gold — rose from $472 billion in September to $503 billion in October, an increase of six percent. In October alone, it entered $8.2 billion, well above the annual average of $7.1 billion.
In the third quarter of 2025, between July and September, physically backed gold ETFs saw record inflows of $26 billion. North American investors led the move, with $16.1 billion, while European funds also bought strongly and recorded their second-best quarter in history, with $8.2 billion.
Gold ETFs track the price of the metal without investors having to buy and store bullion. Many of them keep physical gold in vaults, earning them the nickname “paper gold.”
Unlike stock funds, gold ETFs contain only one component – gold – and therefore do not diversify risk. They are not allowed to enter Germany, despite their presence in most European countries.
On the other hand, so-called ETCs are permitted. (exchange traded commodities) Of gold, listed securities that replicate the behavior of raw materials such as gold.
The “gold rush” continues.
For Martin Siegert, an analyst at Baden-Württemberg Regional Bank, the upward trend will continue. “Many of the arguments in favor of gold are still quite valid,” he wrote at the end of November on the entity’s platform. “Flows into exchange-traded gold products should remain strong.”
Among these factors, he mentions expectations of lower interest rates in the United States, doubts about the future independence of the Federal Reserve, concerns about the strength of the dollar and the possibility that US trade policy will generate new disruptions in 2026.
The bank even raised its forecast: it estimates that gold could reach $4,600 by the end of 2026.
“Anti-fragile origin”
Gold reached a historic high of more than $4,350 per ounce – an internationally standardized measure – in October. It has since stabilized at around $4,115 (as of November 25).
In September, investment bank Morgan Stanley recommended that its clients adjust the classic portfolio structure – 60% stocks and 40% bonds – to include at least 20% gold-linked products.
Mike Wilson, chief investment officer, told Reuters that gold is the “leading anti-fragile asset”, capable of providing protection in times of uncertainty. According to him, the 60/20/20 model will be a “strong shield against inflation.”
Diary Financial Times He called this phenomenon “gold-plated FOMO”: “The biggest gold rally since the 1970s is fueled by investors’ fear of missing out on gains and concerns about rising inflation.”
Cryptocurrencies also want their share
Prosperity doesn’t just come from ETFs. According to Reuters, the American company Tether is also influencing the market.
Headquartered in El Salvador, Tether is today the world’s largest digital asset company and issuing… Stable coin USDT – USDT is crypto-stable, which typically maintains a parity close to one dollar. On his platform he promotes investments related to Gold coins – Digital currencies backed by gold -.
The company has become the largest single holder of bullion outside central banks and has reserves similar to those of countries such as South Korea, Hungary or Greece.
For the MKS expert, the situation shows that even gold – a traditional safe haven – has become an object of speculation.
“In the last two months a real bubble has formed in financial markets, not only in gold and silver, but also in US stocks and the artificial intelligence sector,” says Shields.
“Overheating” has several causes. “The Fed is cutting interest rates, even though we’re not in a recession,” he explains. “That’s pumping more liquidity into a system that probably doesn’t need it.” “That’s why we see inflated valuations for AI-related assets, in US stocks, and a growing bubble in gold and silver.”
(MD/elm)