Is Gold Still a Safe-Haven Asset? Revisiting the Past, Analyzing the Present, and Looking Ahead

A Historical Overview: Why Has Gold Always Mattered?

Gold’s popularity has persisted over centuries due to several key characteristics: rarity, physical durability, global acceptance, and its ability to preserve value over time. In many cultures, gold has not only been used for investment purposes but also as a store of value, dowries, or inheritances. During times of global crisis—world wars, inflation, recessions—gold has safeguarded wealth when most other assets failed.

Gold’s Remarkable Growth Last Year: A Surge of Optimism

In 2023, gold experienced a dramatic rise, surging from around $1,800 to over $2,300 per ounce. This sharp increase caught the attention of investors across the globe.

Why did it rise so fast?

• Global inflation: Post-COVID stimulus and loose monetary policies triggered inflation, making real assets more attractive.
  
• Geopolitical tensions: Conflicts in Ukraine, the Middle East, and ongoing uncertainty in Asia created anxiety.
  
• Currency devaluation: Trust in fiat currencies declined, pushing people toward tangible stores of value.
  
• Tech market volatility: Crypto and stocks were unpredictable, making gold feel “safe.”
  
  

But does this growth signal a long-term trend, or was it just a response to short-term global panic?

Looking Ahead: Does Gold Still Shine in the Future?

With inflation tapering and some markets stabilizing, investors must reconsider their assumptions. Is gold still a strategic asset—or has its time passed?

At Dar Al Tharwa, we’ve had countless clients approach us with absolute faith in gold. Some sold their homes, others funneled life savings into coins or bars, believing it was the only way to preserve wealth.

But this is where education and strategy matter more than ever.

Real Cases: When Clients Needed Direction

Let’s share real examples of clients from across the region who came to us with gold-focused plans—and how we helped reshape their financial futures.

Case 1: Mr. Naeem from Peshawar, Pakistan

Naeem had just sold family land and wanted to invest the full amount—roughly $80,000—into physical gold. He was afraid of banks, stocks, and anything he didn’t understand. But we helped him learn about inflation-adjusted returns, how gold doesn’t produce cash flow, and how overexposure to it could limit future growth. With our help, he now holds 15% in gold, with the rest in low-risk funds and real estate opportunities in Dubai.

Case 2: Ms. Zarmina from Herat, Afghanistan

A single mother working in Dubai, Zarmina planned to buy gold jewelry for her children's future. She saw it as both beauty and security. We showed her how jewelry carried hidden costs—wastage, fees, low resale value—and how gold ETFs and savings plans could offer more safety and liquidity. Today, she’s on track with a customized plan that includes both financial growth and legacy planning.

Case 3: Mr. Azizi, a freelancer from Kabul

Having saved for years doing remote jobs online, Mr. Azizi planned to put all his earnings into raw gold. Through education, he realized that gold was too static for someone still building capital. He’s now invested in growth-focused digital assets and keeps a smaller portion in gold.

Case 4: Mr. Fereydoun from Mazar-i-Sharif

Fereydoun was another example of someone misled by social media influencers who exaggerated gold’s role. We recalibrated his strategy, blending global equity exposure with a 10% gold position. His stress levels dropped—and his performance increased.

Case 5: Ms. Naderi from Islamabad, Pakistan

A talented software engineer, she thought investing only in gold would protect her against local currency fluctuations. But she hadn’t accounted for gold’s long flat periods. We helped her build a diversified portfolio, mixing local and international funds, along with a small gold allocation.

Case 6: Mr. Ahmadi from Dubai

An Iranian expat in the UAE, Mr. Ahmadi was about to sell his apartment to buy gold during the 2023 price surge. Our advisors stopped him just in time, helping him understand that wealth preservation requires balance—not panic.

These stories reflect a broader truth: Financial literacy is power. When people don’t have access to education, they act out of fear, myths, and emotions. Our mission at Dar Al Tharwa is to reverse this trend.

What the World’s Great Investors Say

Warren Buffett

Often skeptical of gold, Buffett calls it a "non-productive asset" that doesn’t generate income. He prefers owning companies that produce value. However, even Buffett’s firm made a cautious investment in a gold mining company during times of uncertainty.

Ray Dalio

Founder of Bridgewater Associates, Dalio famously says: “If you don’t own gold, you know neither history nor economics.” For him, gold is a hedge, not a primary asset. It’s a piece of the puzzle, not the full solution.

Their perspectives remind us: Gold is useful—but not everything.

What’s Changing in the Gold Market Today?

The world has changed since gold was the primary hedge. Consider:

• New reserves are still being discovered and mined
  
• Digital assets like Bitcoin have emerged as alternative stores of value
  
• Younger generations prefer diversified, tech-savvy portfolio
  
• Interest rates now offer returns that compete with gold
  

So while gold hasn’t lost its place, its role is no longer dominant.

How Much Gold Should You Hold?

We often get this question.

At Dar Al Tharwah, we believe portfolio design is personal. But as a general rule:

• Low-risk profiles (retirees, fixed income): 10–20% in gold
  
• High-risk profiles (young, aggressive investors): 5–10%
  
• First-time investors: start with understanding gold’s limitations before committing
  

The worst mistake? Putting 100% of your assets in gold—as many unfortunately do.

The Problem in Emerging Markets: No Access to Financial Education

This issue is especially dangerous in countries like Iran, Pakistan, and Afghanistan, where economic pressures are extreme, currencies are weak, and financial literacy is low.

In Kabul or Islamabad, young, talented people are often forced to do manual labor, or work with the lowest possible freelance wages. Why? Because they lack access to information that could change their lives.

Many believe gold is the only answer—because no one told them otherwise.

We’ve seen countless clients who were ready to invest their entire family inheritance into gold—because they didn’t know how to assess risk, diversify, or think long-term.

Why Our Educational Services Are Free

At Dar Al Tharwah, we don’t charge for our financial education services. Why?

Because we believe it is our duty to close the knowledge gap between those who can afford expensive consultants—and those who can’t. Access to financial wisdom should not be limited to the wealthy.

Dr. Solaymani, our founder, has spent decades witnessing firsthand how lack of knowledge traps people in poverty. From Tehran to Herat to Karachi, he’s seen lives changed—not by money, but by the right decisions at the right time.

Free financial education isn’t just charity. It’s our mission.

Conclusion: Gold Has a Place, But So Do You—In the Future

Gold will always be part of the financial system. It offers safety, heritage, and consistency.

But the world is evolving. And to succeed in it, investors must think globally, act strategically, and learn constantly.

We’re here to guide you—without pressure, without hype, and always with your future in mind.