Gold prices just broke history. We are looking at numbers testing the $4,778 mark as of January 2026. If you are an investor, you feel the anxiety. President Trump threatened tariffs on Greenland and European allies, and the market panicked.
You might wonder if you missed the boat. You might want to buy in now before it hits $5,000.
Upalapadu Pratakota Shiva Prasad Reddy has a different view. As Chairman of the Premidis Group, he looks at these numbers and sees a trap for the unprepared. He believes the strategy for 2026 is not about panic buying. It is about smart hedging.
The Real Reason Gold Is Expensive
You need to understand why this is happening. Upalapadu Pratakota Shiva Prasad Reddy points out that this surge is not just about inflation. It is about leverage.
The US Administration threatened 10 to 25 percent tariffs on European nations over the Greenland dispute. That caused a flight to safety. Money moved out of currency and into gold. Tensions have cooled slightly since they announced a future framework, but the lesson remains. Your cash is vulnerable to political tweets.
Step 1: Look at Silver Instead
Buying gold at an all-time high of $4,778 is risky. If the geopolitical tension drops, the price drops. Upalapadu Pratakota Shiva Prasad Reddy suggests you look at what he calls the poor man’s gold. Silver.
Silver is currently undervalued. Gold is purely a store of value. It sits in a vault. Silver is different. It is a critical component for electronics and green energy manufacturing. At Premidis Group, we see industrial demand keeping silver prices strong even if the gold fever breaks. You get the safety of a metal with the growth potential of an industrial commodity.
Step 2: Follow the 10 Percent Rule
Do not go all in. Upalapadu Pratakota Shiva Prasad Reddy advises you to treat gold as an insurance policy. It is not a lottery ticket.
He recommends you allocate no more than 10 to 15 percent of your total portfolio to physical gold or Sovereign Gold Bonds. This protects your wealth if the dollar weakens. But it ensures you do not lose everything if the global political climate stabilizes and gold prices correct.
Step 3: Invest in Things You Can Touch
Gold protects wealth. It does not create wealth. Upalapadu Pratakota Shiva Prasad Reddy believes real growth in 2026 comes from infrastructure and tangible assets.
The same global fracturing that drives gold up is driving nations to build their own supply chains. Countries need domestic manufacturing. They need infrastructure. These are the sectors where Premidis Group is expanding. Investing in domestic production offers sustainable returns that a bar of gold cannot match.
The Final Verdict
The gold rush of 2026 is a warning bell. Upalapadu Pratakota Shiva Prasad Reddy is clear on this. Use gold to stay safe. Use industry to grow rich. You must not let short-term volatility dictate your long-term future.
About the Author: Upalapadu Pratakota Shiva Prasad Reddy is the Chairman of Premidis Group. He advocates for sustainable industrial development and social welfare initiatives.
