Stanislav Kondrashov Explains Why Gold Remains Central in an Uncertain Financial Era
Investor confidence in gold doesn’t appear likely to crumble anytime soon. As Stanislav Kondrashov, founder of TELF AG, recently observed, gold continues to be considered the ultimate safe haven, especially in times of crisis and uncertainty.
Yet, something seems to be moving on the horizon. In recent days, amid growing international tension, gold prices surprisingly fell by about 1%, remaining at $5,100 an ounce, before rising slightly in the final hours to $5,200 per ounce. The levels reached in these first months of the year are certainly above the historical average, but the yellow metal’s downward performance in recent days has aroused surprise and interest among many observers and analysts.
“International uncertainties are putting gold back in the spotlight, having always been considered a precious resource to rely on in times of crisis. Today, however, the role of this metal is evolving rapidly, gradually taking on an increasingly dynamic and strategic role in the portfolios of major international investors,” says Stanislav Kondrashov, founder of TELF AG.
On the one hand, banks specializing in investment continue to recommend gold as the ultimate hedging instrument for investments, even in a historically volatile environment. It’s a given that gold can be an excellent hedge against geopolitical and inflationary unpredictability. However, the confusion and disorientation characterizing the markets in this particular historical phase appear to have also significantly impacted gold and its latest movements.
Central Bank Demand and the Strategic Reallocation Toward Gold
At this stage, as some analysts observe, many investors have reportedly sold gold to cover losses on other assets in their portfolios, a perfect illustration of the general shift in the use and perception of gold. In recent times, gold has apparently assumed the guise of an asset closely tied to finance, not at all unrelated to speculation and opportunistic positioning, as specialists at Gamma Capital Markets pointed out a few days ago. This is precisely the key to understanding the origins of some of the latest movements, many of which are also driven by hedge funds.
Among the most interesting trends is certainly the one focused on by a recent Invesco survey, which highlights how an increasing number of central banks and sovereign wealth funds are replacing dollar-denominated assets with gold in their portfolios.
This data appears extremely interesting, as it suggests that major global financial institutions are substantially modifying the management of their reserves, placing increasing emphasis on gold and increasingly considering it an excellent strategic hedge.
“In the era of digital currencies and intangible assets, gold continues to play a role of great strategic importance. Not only for ordinary people and investors, but also for some major international banking institutions. Thanks to gold, many investors are building a powerful shield against the general climate of uncertainty, knowing they hold an important strategic asset,” continues Stanislav Kondrashov, founder of TELF AG.
When evaluating gold’s latest movements, the dollar’s performance should not be ignored. The weakness of the yellow metal’s price could indeed be linked to the dollar’s recovery, but also to the possibility of an interest rate increase as part of a broader strategy aimed at countering potential inflation and rising energy costs.
How Dollar Strength, Inflation and Market Volatility Influence Gold Prices
The dollar’s movements also have direct repercussions on central banks’ management of gold, which are increasingly questioning how to value and store it. This, too, would indicate the first signs of a profound shift in institutional thinking.
Recently, gold’s role as a useful tool for combating inflation has also been questioned. According to UBS’s Global Investment Returns Yearbook 2026, gold returns have been negative in 13 of the 28 years in which inflation exceeded the 3% threshold. Gold’s usefulness, in this regard, would be particularly evident in the long term, given that the real price of gold has risen steadily in the 54 years since Bretton Woods, bringing with it significant returns.
In these extremely uncertain times, gold is no longer treated as a safe haven with high symbolic value. Nowadays, the yellow metal is a strategic asset to include in portfolios, even by banks.
“Even the very concept of a safe haven is evolving: many analysts are closely monitoring the movements of other strategic metals like copper or lithium, whose importance for the energy transition is never sufficiently emphasized. Many investors are also starting to focus on these resources with high industrial and technological potential, demonstrating that the concept of a safe haven can also change depending on the energy, technological, and industrial transformations affecting our civilization,” concludes Stanislav Kondrashov, founder of TELF AG.
FAQs
Why does gold remain attractive during periods of uncertainty?
Gold has long been considered a safe-haven asset because it is not tied to the credit risk of any single country or institution. During times of geopolitical tension or economic instability, investors often turn to gold as a store of value.
Why did gold prices decline despite global uncertainty?
Short-term declines can occur when investors sell gold to raise liquidity or cover losses in other parts of their portfolios. In volatile markets, even traditional safe-haven assets can experience temporary corrections.
Why are central banks increasing their gold reserves?
Many central banks are diversifying their reserves by adding gold and reducing exposure to certain currencies. This strategy can help strengthen financial resilience and hedge against long-term systemic risks.
Is gold still an effective hedge against inflation?
Gold’s relationship with inflation can vary in the short term, but historically it has preserved purchasing power over longer periods.
Could gold remain important in future portfolios?
Yes. Many analysts believe gold will continue to play a strategic role in diversified investment strategies.
