Gold rush 2026: Prices soar, reserves explode – why everyone is racing to buy the shiny metal | World News

New Delhi: Interest in gold has increased rapidly recently; The price of an ounce briefly reached a record high of $5,600 on January 29 before settling just below $5,000. Amid market volatility and global tensions, more people are turning to gold as a safe investment.

Understanding the value of gold requires looking at both its weight and purity. Precious metals, including gold, are measured in troy ounces, with one troy ounce equaling 31.1035 grams. At current rates, a gram of gold costs about $160, while a standard 400-ounce (12.44 kg) gold bar is worth about $2 million.

Troy ounces differ from regular ounces, which weigh 28.35 grams and are used for everyday items such as food.

Purity is measured in carats. Pure gold is 24K, while 22K, 18K and 9K indicate mixtures with metals such as silver, copper or zinc. Stamps on gold items such as 24K or 999 indicate the percentage of purity, while 18K pieces often carry the 750 stamp, meaning 75 percent purity.

Different carat levels are used for different purposes: 24K is soft, never tarnishes and is ideal for investing in coins or bars; 22K is durable and often used in luxury jewelry; 18K offers strength and warmth for fine jewelry; 9K provides maximum durability for affordable parts.

Other carat levels, including 14K and 10K, are sold worldwide.

When purchasing gold jewellery, the cost depends on the spot price, the weight and purity of the product, workmanship and applicable taxes. While the spot price itself is fixed, buyers can often negotiate or charge for labor.

Gold has been a symbol of wealth and security, valued for thousands of years. It served as currency, jewelery and a safe haven during market turbulence. Until 1971, the US dollar was directly tied to gold. During the classical gold standard period, it could be exchanged for $20 per ounce.

During the Great Depression, the price rose to $35 per ounce, and later under President Nixon, gold was decoupled from the dollar and its value was left to market forces.

Gold prices have quadrupled in the past decade; It has risen from $1,250 per ounce in 2016 to almost $5,000 today.

Gold prices are determined in US dollars on the global spot market, with exchanges in London and New York serving as reference points. Local prices vary depending on currency conversions, printing and distribution costs, and taxes or import duties. For example, India imposes a 3 percent GST on gold, while the United Kingdom and the United Arab Emirates do not impose a tax on investment gold.

Countries also produce unique bullion coins, each with cultural and historical significance. For example, the United States’ Golden Eagle, China’s Golden Panda and South Africa’s Krugerrand.

When it comes to reserves, the United States leads with 8,133 tons; which is almost equal to the combined total of the next three countries. This is followed by Germany with 3,350 tons, and Italy with 2,451 tons. These reserves show which countries have the greatest financial cushion against economic uncertainty.

Gold continues to attract the attention of investors, collectors and central banks by offering both tangible security and protection against global fluctuations. Its value is affected by market forces as well as history and culture. Strategic reserves also play a role, making gold one of the world’s most enduring forms of wealth.