Gold’s rally is a red flag, not a win? Advisor warns retail buyers face real danger

A historic surge in central bank gold buying—over 316,000 kg in the past year—may be less about profit and more a global red alert, warns Sujit Bangar, founder of taxbuddy.com. In a widely shared LinkedIn post, Bangar calls the 63% jump in gold prices not a rally, but a warning: global financial trust is cracking.

“This isn’t a mere rally. It’s a warning signal,” Bangar wrote, pointing to an unprecedented pace of gold accumulation that echoes past crisis markers like the 2008 financial collapse and COVID-19.

Traditionally, investors turn to the U.S. dollar and Treasuries during volatility. But Bangar argues the game has shifted. “Fear no longer means dollar safety—it means buying gold,” he said, noting the dollar’s steepest six-month fall in 50 years and rising fears over fiat currencies.

At the heart of this shift is what he calls “The Debasement Trade”—a flight from assets backed by governments to those free from counterparty risk. “Gold doesn’t default. It doesn’t print. It doesn’t follow a policy agenda,” he said.

Central banks themselves are leading the charge. Once net sellers in the 2000s, they are now the largest buyers, with China, India, and Russia stacking reserves. In the BRICS bloc, Bangar notes, this is not a hedge—it’s strategy.

A key trigger: the 2022 freezing of Russia’s central bank assets by Western powers. “That shock reminded nations: dollar reserves can be weaponised. So they’re diversifying,” he wrote.

The data reflects that shift. Over the past year, gold’s share of total reserves rose from 9.6% to 13.1% in India, and from 29.5% to 35.8% in Russia.

Even silver and platinum are echoing the anxiety, driven by industrial and green-tech demand, but still part of what Bangar calls a broad "vote against uncertainty."

Political pressure, especially from Trump’s push for rate cuts and renewed tariffs, further supports gold. “It’s a rare heads-I-win, tails-you-lose setup,” Bangar said.

“This isn’t about greed—it’s about faith, fear, and fragility. Until trust returns to currencies, gold will keep shining.”