The expert called gold the most sought-after asset on the market

Today, one of the most sought-after assets on the market is gold. It does not generate profits, it is expensive to store and extract, but at the same time, its value has almost doubled over the past year. Dmitry Syrchin, CEO and founder of Cresco Capital, told Izvestia about this on October 14.

"The reason is the growing geopolitical tension and uncertainty: countries are increasingly finding themselves in confrontation with each other, and this is pushing up the prices of gold, silver and even platinum," he said.

States are looking for reliable protection and are betting on gold. The example of countries that have lost hundreds of billions of dollars due to frozen assets, he said, shows why this metal is becoming the main tool for preserving reserves.

Major economies such as China, India, Saudi Arabia, Brazil, Turkey, and Germany are also actively increasing their gold reserves, abandoning the previous practice of storing reserves in foreign currencies. Storing the metal is more expensive from a logistical point of view, but it ensures independence: in isolation, gold remains an affordable asset, unlike currencies that can be frozen.

"Last year, the demand for gold exceeded the supply by almost 1 thousand tons, which is about the three—year volume of Russian production. Central banks have become the main buyers, and it is bank gold that defines the market today, while the role of the jewelry sector has noticeably decreased," the specialist noted.

Invaluable contribution: gold may rise in price by 10% to $4,300 per ounce

The precious metal has already strengthened 1.5 times since the beginning of the year, but does it make sense to invest in it now

The trend is likely to continue. The price of gold may rise to $4.5 thousand or even $10 thousand per ounce. If confidence in the dollar, euro, or yen declines, demand for the metal will remain high, and there are no actual restrictions on its value.

A similar situation is developing in cryptocurrencies: bitcoin and ethereum will be in demand not only from private investors, but also from government agencies and sovereign funds, which are beginning to actively accumulate them.

According to Syrchin, the gold market is currently overheated.: The active growth in recent months creates the prerequisites for a correction. Any comments from central banks or changes in interest rates may lead to a short-term decline in quotations.

Nevertheless, interest in gold as a capital protection tool remains consistently high. The optimal strategy today is to keep the share of gold in the portfolio, but without aggressive purchases and borrowed funds. This is more a moment for careful retention of positions than for building up.

On October 8, Alexander Schneiderman, head of Alfa-Forex's customer support and Sales department, said that the rise in gold prices was due to political instability in the United States. He also added that expectations of further easing of US monetary policy are contributing to the rise in gold prices.

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