I noticed an interesting thing in the precious metals market. The market capitalization of gold has increased by approximately $6 trillion since the beginning of the year — more than the current valuation of one of the largest tech giants, which was around $4.6 trillion in January. Gold spot prices are currently around $5,514 per ounce, and there’s a reason for that.

The drivers are clear: central banks are actively buying gold, plus retail ETFs are seeing inflows. People are seeking safe assets amid geopolitical tensions and trade wars. Central banks are generally absorbing over 800 tons annually, and this number isn’t decreasing. The market capitalization of gold is growing because the demand is real, not speculative.

What’s funny is that Bitcoin has not been correlated with gold since mid-last year. Previously, both assets moved together as alternatives to traditional markets, but now gold is taking its own path. This indicates that the growth in gold’s market cap is driven by fundamental demand, not by a wave of alternative assets.

Looking ahead, this trend could continue. Uncertainty remains, so investors will continue to seek reliable stores of value.