Gold prices have shattered records in 2025, breaking through the $4,000 per ounce or over rupees 1.3 lakh per 10 g barrier for the first time in history. The precious metal has surged more than 50% this year alone. Zoho founder Sridar Wimbu has joined former IMF chief economist Gita Gopinat in sounding the alarm. Wimbu describes the US stock market as being in a clear and massive bubble. Echoing Gopinat's analysis published in the economist. He warns that extreme leverage in financial system means that we cannot rule out a systemic event like the global financial crisis of 2008 and 2009. Crucially, views gold surge not as an investment opportunity, but as insurance against systemic financial risk. He argues that when debt levels reach current heights, trust in the financial system breaks down. Here's what he posted on X. The US stock market is in a clear and massive bubble. The degree of leverage in the system means that we cannot rule out a systemic event like the global financial crisis of 2008. Gold is also flashing a big warning signal. I don't think of gold as an investment. I think of it as an insurance against systemic financial risk. Ultimately, finance is all about trust. When debt levels reach this high, trust breaks down. Guptat's analysis is equally stuck, warning that a market correction could erase up to $35 trillion in global wealth with $20 trillion in US household losses and $15 trillion in international losses. So, why is gold soaring? Multiple factors are converging. Central banks purchased over thousand tons of gold in recent years, diversifying away from US dollar reserves. JP Morgan Research forecasts central banks will buy around 900 tons in 2025. Geopolitical tensions, trade policy uncertainty under President Trump's tariffs, and concerns about US dollar debasement are driving investors towards safe haven assets. Goldman Sachs predicts gold could reach $4,900 per ounce by December 2026, while JP Morgan expects prices to average around $3,675 by the fourth quarter of 2025 and climbed toward $4,000 by mid 2026. The World Gold Council reports that 95% of the central banks surveyed expect to increase their gold holdings over the next 12 months. The underlying issue according to Gopinat isn't unbalanced trade but unbalanced growth. The world has become dangerously dependent on American stock markets particularly AIdriven tech stocks. Gold's historic rally may be telling us that investors are hedging against a system under unprecedented strain. For more news and updates, keep watching Live Mint.