Today, the FTSE is plunging again. So are stock markets around the world. Right now, everybody is a loser.

Except for one asset class. It’s the world’s oldest store value, with a history dating back 4,000 years.

That asset class is gold, and it’s shining right now.

The gold price has smashed through record highs as investors panic over Donald Trump’s tariff war.

With markets in freefall and trillions wiped off global pension pots, many savers are ditching shares and piling into gold in a desperate bid to protect their wealth.

The gold price hit a record high $3,167 (£2,436) an ounce last week after rising 16% so far this year. That’s on top of 27% growth in 2024.

Gold is seen as a safe port in a storm but experts are urging caution. The price has retreated from recent highs. It could crash back to earth if Trump relents and the panic eases.

Rick Kanda, managing director at The Gold Bullion Company, said Trump’s tariff war has made physical gold more attractive than rival safe haven cash. “This is causing logistical challenges and buyers are worried about the gold shortages this might cause.”

Gold marketplace BullionVault is having its busiest days since Brexit and Trump’s first election win, with a single customer spending £1.5million on gold via their smartphone app on Sunday.

BullionVault’s director of research Adrian Ash said customer demand has jumped 136.8% in just a week. “While gold isn’t immune to Trump’s crash, it’s held up better than shares.”

Ash warns that gold isn’t bulletproof. “If the plunge in risk assets continues, there’s a chance gold will fall too, as traders sell winners to cover losses elsewhere.”

But he added: “Like the financial crisis and Covid crashes, that may just drive even more people to buy and hold gold for the long haul.”

So should you jump on the gold bandwagon? Some experts say no. Jason Hollands, managing director at Evelyn Partners, is urging equity investors to avoid panic-selling shares. “We see time and again that economic shocks hit markets short-term but they recover in the medium to long term.

“It’s easy to want to switch to ‘safe’ assets like gold when your portfolio’s in the red, but that’s often not the best move.”

Hollands adds that the best protection is a diversified portfolio, including some gold, but also defensive stocks, cash, property and government bonds.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, saw a flicker of hope yesterday with markets climbing after a brutal Monday but said the trouble is far from over. “Trump isn’t backing down, and volatility is the only certainty right now.”

Britzman advises investors to stay focused. “Keep calm, think long-term and resist getting swept up in the panic. History rewards those who stay the course.”

Gold is shining but the precious metal has been highly volatile in the past, despite its reputation as a store of value.

What goes up in a frenzy can just as quickly fall when the dust settles. Donald Trump has triggered a gold rush. Think twice before piling in today.