The image of young investors buying gold on credit should worry any seasoned market watcher. Gold has historically been a safe haven — a hedge against risk, not a speculative play. The rise of leveraged retail buying indicates sentiment is overheating.

Credit-driven demand is not sustainable. It distorts real buying power and tends to precede corrections, not rallies. Combine that with gold’s recent all-time highs, and you get a textbook setup for a top. Even central banks, though still net buyers, have begun slowing their purchases. Real interest rates are inching up, and once investors can earn better yield from bonds or money markets, gold loses its shine fast.