Gold Enters Once-in-a-Generation Bull Market Amid Debt and Inflation
Vikram Dhawan of Nippon India Mutual Fund says gold is in a once-in-a-generation bull market, driven by debt, inflation, and uncertainty.
The total sovereign debt globally has increased from $20 trillion in the year 2000 to $110 trillion in 2026, while the total global debt has risen from $80 trillion to $370 trillion over the same period.
Dhawan suggests that gold's lack of credit risk makes it an attractive asset class for investors, particularly in a market where central banks are buying gold due to its properties as a safe-haven asset.
However, he also warns that rising investor demand could make gold more volatile, with liquidity posing a key risk, and notes that the biggest enemy of debt is deflation, which can be devastating for people and the global economy.