Gold still makes sense for a few simple reasons.

When interest rates don’t beat inflation, keeping money in cash or bonds slowly loses value, so gold becomes a safer place to park wealth.

Central banks keep buying gold, and just a few of them account for most of the demand. That steady buying helps support prices even when markets pull back.

Gold is a safe place in uncertain times. When wars, economic shocks, or market stress appear, investors often move into gold to protect their capital.

Gold also acts as a currency shield. It holds value when paper currencies weaken over time.

Finally, gold balances a portfolio. Even a small amount can reduce overall risk when stocks and bonds fall together.

These simple reasons explain most of why gold remains relevant, even when prices are high.