Why Zoho's Sridhar Vembu doesn't consider gold a conventional investment
18 Oct 2025

Sridhar Vembu, the Chief Scientist and Founder of Zoho, has issued a warning over the recent spike in gold prices.

He described the yellow metal as "insurance against systemic financial risk" instead of a conventional investment.

His caution comes on Dhanteras, a day when buying gold is considered an auspicious duty rather than a risky bet.

Gold prices have surged by 63% in a year
Financial concerns

Vembu emphasized that finance is ultimately based on trust, and when debt levels rise as they have globally, that trust is compromised.

His caution comes amid a market euphoria where domestic gold prices have skyrocketed by 63% over the past year.

From around ₹78,840 per 10g last Dhanteras, prices now hover near ₹1,28,200, outpacing benchmark indices like Nifty 50.

Price surge driven by fear and policy shifts
Market dynamics

Analysts say the price surge is driven by a mix of fear and policy. Geopolitical tensions from global conflicts and trade wars are fueling a flight to safety.

This is further bolstered by central banks worldwide strategically accumulating gold to diversify away from the US dollar.

Despite high valuations altering buying patterns, gold remains attractive as jewelry and a hedge against financial uncertainty during festive seasons.

Stock market in a massive bubble, warns Vembu
Economic warning

Vembu's comments come amid fears of soaring global market valuations and rising debt levels.

He warned that the stock market is in a massive bubble with dangerously high global exposure to US equities.

The Zoho CEO warned that a systemic event like the 2008-09 financial crisis cannot be ruled out due to the high leverage in the system.