Tell Me Why gold still matters in a changing financial world

Gold’s enduring appeal lies in its ability to preserve value across generations, currencies and financial systems. Speaking on the Gulf News Tell Me Why podcast, Dr Fahmi Iskander, Partner and Chief Investment Officer at OGold, explains why the precious metal continues to play a role in wealth preservation and why investors need to think beyond simply accumulating money.

Iskander points to a fundamental distinction between saving currency and preserving purchasing power. “You’ve preserved the number, but that 100 dirhams, is it going to be able to buy the same things that it could 10 years ago?” he asks, highlighting how inflation can gradually erode the real value of cash.

For Iskander, gold’s historical resilience is rooted in its independence from government-issued currency. “Gold doesn’t need a government to tell you what it’s worth. It holds its value within itself,” he says, pointing to its use across thousands of years of economic and monetary change.

The psychology of investing

History, however, is only part of the equation. Investor behaviour can be equally influential, with fear, greed and FOMO often driving decisions at precisely the wrong time.

“People tend to buy what has already gone up, and they tend to sell what has already gone down,” Iskander says. When excitement builds around an asset, investors can rush in because everyone else appears to be buying, potentially turning emotion into costly decisions.

He argues that education and technology can help investors make more informed choices, while stressing the importance of diversification. Gold, he says, should not necessarily be viewed as a way to predict the next crisis, but as a form of protection against uncertainty. “Gold is insurance,” he says. “It’s as simple as that.”

Making wealth preservation accessible

Technology is also changing who can access traditional stores of value. OGold allows users to access fractional gold and silver from as little as Dh1, bringing precious metals within reach of a much wider audience.

Iskander believes this accessibility can also encourage greater financial literacy. “People think investing is only for the rich. That is not the case,” he says. Starting with a small investment can encourage people to ask questions about inflation, purchasing power and how different assets behave.

Ultimately, he argues that financial security should be measured not simply by how much money someone accumulates, but by how effectively they preserve its value. “Wealth again is not about what you can accumulate, but rather it’s what you can preserve.”

His final message to investors is one of caution and education: “Never confuse confidence with certainty.” In an environment shaped by market cycles, geopolitical uncertainty and rapidly evolving technology, understanding risk, diversifying and continuing to learn may be as important as the assets themselves.