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Gold's bubble behavior may signal paradigm shift

Section: Daily Dispatches

By Edward Chancellor
Reuters
Friday, December 5, 2025

LONDON -- Assets that rise rapidly above their long-term trend are usually set for a fall. That's what happened to gold after it peaked in late 1979. Over the following five years, the price of the yellow metal fell by nearly two-thirds. 

This year, gold has risen more than 60% in dollar terms, its best performance in 46 years. Adjusted for inflation, gold has never been more expensive. Either we are witnessing another bubble or it's a paradigm shift.

... Dispatch continues below ...


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The precious metal known as the eternal store of value has retained its purchasing power over millennia. On examination, its market valuation tends to reflect different monetary regimes. ...

... For the remainder of the commentary:

https://www.reuters.com/commentary/breakingviews/golds-bubble-behaviour-may-signal-paradigm-shift-2025-12-05/

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