Surging gold prices

The rising demand for gold, both globally and in Bangladesh, is a serious issue for a developing country like ours. Many people in Bangladesh view gold not just as a luxury item but also as a safety net-a way to save and secure themselves during difficult times.

The surge in gold prices reflects deeper economic problems: rising inflation, a weak domestic currency, and declining consumer confidence. When people increasingly turn to gold to safeguard their wealth, it signals a worrying lack of trust in the financial system and in economic stability. While investing in gold may protect personal wealth in the short term, it limits the funds available for productive investments, such as financing small enterprises, supporting entrepreneurs, and improving education. Over time, this trend poses a significant threat to Bangladesh's long-term development.

Policymakers must take note of the growing demand for gold. This trend suggests eroding trust in traditional banking, currency weakness, and rising inflation. Clear and effective monetary policies are essential to stabilise the currency and restore consumer confidence. At the same time, the government should encourage safe and productive avenues for ordinary citizens to invest and save.

The issue of gold prices is more than just a matter of commodities; it reflects public confidence and the overall health of the economy. A nation should continue to create secure and productive opportunities for savings and wealth generation, rather than allowing citizens to rely solely on gold because they perceive it as safe.

Sadia Tasnim

Student

North South University, Dhaka