Gold Rush: Is History Repeating in the Digital Age?

The 19th Century Gold Rush - The Chapter That Changed the World

In 1848, when James W. Marshall accidentally discovered gold at Sutter's Mill (California, USA), no one expected a global gold rush to break out. News spread quickly. Thousands of people from all over flocked to the American West in hopes of changing their lives.

Soon, other gold rushes followed in Australia, South Africa and Canada, creating one of the largest economic migrations in history. New towns sprang up, transportation systems such as railways developed rapidly and world finance began to take shape with the advent of banking and trade networks.

However, it was not all gold. The rush also brought tragedy: indigenous communities were driven out, the natural environment was devastated, and most of the gold seekers returned empty-handed, with only a lucky few making a fortune.

More than 175 years later, in 2025, gold has once again captured almost the entire global spotlight. Its price has reached unprecedented levels, reflecting a rising tide of uncertainty among investors and ordinary people.

Starting the year at $2,624.50 an ounce, gold has soared to $3,296.40 an ounce in the first four months of the year, a gain of nearly 26%. At one point, the price even surpassed $3,500 an ounce.

The world's largest gold ETF, SPDR Gold Trust (GLD), has also risen more than 28% year-to-date and 46% year-to-date, reflecting a rush to safe-haven assets.

Some optimistic experts predict that gold prices could reach $3,700-$3,810 an ounce before the end of the year, while more cautious ones warn of the possibility of a sharp correction.

Gold prices this year have continuously reached new peaks, even surpassing the $3,500/ounce mark at times (Photo: Getty)

What is driving the current gold rush? There are five major factors that are closely linked to push gold prices up. First, trade tensions, territorial disputes, and confrontations between major powers increase the demand for gold as a safe haven. Next, central banks are actively buying gold, especially in Asia, as many countries reduce their USD reserves and increase gold purchases to become financially independent.

Inflation concerns and the weakening of the US dollar are also factors pushing up gold prices. Investors fear that their money will lose value, so they move their assets into gold, while also expecting the Fed to cut interest rates, further pushing up gold prices. The fourth reason is the volatility of the stock market, when sharp declines in technology stocks make gold an ideal "safe haven".

The final reason is the massive inflow of capital from institutional and individual investors. Both large and small investors are pouring money into gold, through various channels from physical gold to related financial products.

"Digital Age Fever": What is Gold Investing Like Now?

If in the past, gold rushes were associated with fierce digging in the wild, the gold rush of 2025 will happen with just... a click of the mouse.

The digital world has opened up a myriad of more convenient ways to access gold than ever before, from holding physical gold – the preferred option for those who appreciate its tangible value – to investing in gold ETFs to take advantage of its high liquidity. Financial products such as gold mining stocks or gold futures contracts also provide investors with indirect and more flexible access to the market. Gold is even being integrated into retirement accounts, becoming part of a long-term wealth protection strategy.

In this new game, physical strength is no longer the deciding factor; instead, strategy, technology and agility are the keys to success.

With gold surging, experts warn investors not to be too blind. Positive signals are supporting gold prices, including expectations of a Fed rate cut and a weaker US dollar opening up room for further price increases; simmering geopolitical uncertainties are reinforcing gold’s safe-haven status; and a wave of gold buying by central banks – especially in emerging markets – is just beginning.

However, there are caveats: gold is becoming one of the most crowded global trades, and history shows that “overcrowding” is often a sign of strong corrections. If the financial situation stabilizes, the demand for shelter will decrease, putting great pressure on gold prices. In particular, crowd psychology is very susceptible to sudden reversals in the face of bad news, especially for FOMO investors who buy at high prices.

To avoid falling victim to the digital gold rush, experts advise investors to stay alert and develop a well-thought-out strategy. Diversification is the golden rule - never put all your eggs in one basket. Prioritize long-term investments instead of chasing short-lived waves and the fear of missing out.

Choosing the right investment product is also important: if you need high liquidity, gold ETFs are the ideal choice; but if you want to store assets for the long term, physical gold is still a reliable channel, although it is difficult to sell quickly. In addition, it is necessary to closely monitor monetary policies, world economic developments and carefully calculate the costs incurred such as storage, trading or portfolio management.

Investors fear that money will lose value, so they transfer their assets into gold, and at the same time expect the Fed to cut interest rates, further pushing up gold prices (Photo: Finbold).

Future prospects

Forecasts for the future of gold are fiercely debated. One camp believes that gold prices will continue to soar if geopolitical risks and global inflation are not effectively controlled. The other camp believes that the current optimism is excessive and that a psychological shock could send the gold market into a sharp correction.

Key factors to watch in the coming period include the US Federal Reserve’s interest rate policy, the strength of the US dollar, the gold buying strategies of major central banks such as China and India, as well as unexpected shocks from the global economy or geopolitics. Regardless, in this “fever”, caution and a long-term vision will be the compass for those who want to turn gold into a real asset protection and growth tool.

This year’s gold rush is not just about prices, but reflects a deep sense of insecurity in today’s volatile world. As in 1849, in times of turmoil, people seek refuge. Gold, with its millennial history as a symbol of value, has been, is, and will probably continue to be the king of global investors.

But remember that great opportunities always come with risks. Being cautious, alert and having the right strategy will be the key to not being "buried" under this bright golden light.

Source: https://dantri.com.vn/kinh-doanh/con-sot-vang-lich-su-co-lap-lai-trong-thoi-dai-so-20250427204819577.htm