I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?
It has been happening for a long time and almost many countries are holding gold as an effort to increase reserves to limit dependence on the dollar. The price of gold can be said to be stable and even if it increases, it is not as volatile because for a long time the movement of gold prices has tended to be stable. Recently, gold has experienced a significant price increase momentum, but if traced year by year, the price has increased over a fairly long period.
For the general public, buying gold is a habit that is done because I saw long before people stored gold compared to storing fiat currency and maybe the influence still exists, but gold has become part of the investment for most people before.
Bluntly put, you're both right and wrong. Its true that some countries have been buying up more gold to rely less on the dollar - thats not new. And yeah, in the past gold was viewed as stable store of value you could count on.
But to say gold prices are always stable and not volatile just isnt right. The price of gold goes up and down a lot. Not like cryptocurrencies, of course, but still. The big price jumps we have seen lately
is volatility, plain and simple.