February 5, 2025 – Gold prices soared to an all-time high on Wednesday, topping $2,870 per ounce. Global trade tensions, a weakening U.S. dollar, and inflation concerns continue to push the gold price.

Key Drivers Behind the All-Time High

1. Trade War Tensions: The ongoing trade war between the United States and China has prompted investors to flock to gold as a safe-haven asset. China’s recent tariffs on U.S. imports in retaliation for U.S. duties on Chinese goods have only heightened these tensions. For example, China recently imposed tariffs on U.S. imports such as coal, LNG, crude oil, farm equipment, and automobiles in retaliation for U.S. duties on Chinese goods. This tit-for-tat tariff exchange has heightened economic uncertainty.
2. Weakening U.S. Dollar: A softer U.S. dollar has made gold more attractive to international buyers. When the dollar weakens, gold becomes relatively cheaper for holders of other currencies. This increased affordability boosts demand as international buyers seize the opportunity to buy gold at lower prices. Additionally, gold’s status as a safe-haven asset during times of currency volatility makes it a more appealing investment, further driving up demand.
3. Inflation Concerns: Gold is traditionally seen as a hedge against inflation. With rising inflation risks and uncertainty over the Federal Reserve’s policy path, investors are turning to gold to protect their wealth. By investing in gold, they aim to preserve their purchasing power and shield their assets from inflation.
4. Central Bank Buying: China’s continued accumulation of gold reserves amid escalating trade tensions also contributes to the price surge. Analysts believe that gold prices could cross the $3,000 per ounce mark (a new all-time high) if trade tensions persist this year.

Market Reactions and Future Outlook

The surge in gold prices has had a ripple effect across other precious metals, with silver, platinum, and palladium also experiencing gains.

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It is the day after the election, and gold and silver have tanked. What should you do? Should you sell, should you buy? Will gold and silver continue to tank? Here are some things to keep in mind.

Trump’s Economic Perception

• Better for the Economy: President Trump is perceived as better for the economy. His policies, which focus on reducing regulations and taxes, are conducive to economic growth.
• Calming Geopolitical Conflicts: Trump has made clear that he intends to lower the temperature of the conflicts around the world, such as in Ukraine and the Middle East. Geopolitical conflicts typically lead to buying gold as a safe haven asset. Demand for gold and silver could lessen which could make the price tank. 
• Cutting Government Waste and Tightening Trade Deficits: His proposed policies aim to reduce government spending and address trade imbalances, which can positively impact the economy.

However, Remember:

• Debt Accumulation: It’s crucial to remember that Trump’s administration added a substantial amount of debt, nearly as much as the current administration has.
• Real Estate Debt: Trump’s real estate  business empire is built significantly on debt.
• Promises and Debt: His promises of tax cuts and increased spending (e.g., no income tax, no tax on Social Security, no tax on tips, lowered corporate and personal tax rates, and military rebuilding) will likely require significant borrowing, potentially increasing national debt.
• Rebuild the Military: Trump has made promises to rebuild our nations military, this also carries an expense.
• China, Japan & the EU: These regions are aggressively expanding their monetary base, printing more money to stimulate their economies. This practice typically leads to inflation, which in turn can drive up the prices of precious metals.

All of this requires money, and it has to come from somewhere! All of that new money, rather than, making gold and silver tank, would lead to an even higher price.

Investment Strategy

Bottom line—today is a day to buy. Gold and silver have tanked. BUY THE DIP! I never say that, but I am saying that today. DON’T GET GREEDY thinking the metals will get cheaper. DON’T be scared to buy. Just buy a little—you don’t have to buy a lot. Gold will be $3500 – $4000, and silver $50 by the end of next year. Global expansion of the M2 money supply is sufficient in itself to drive the metals higher.

Remember, investing is about balancing risk and reward. Diversify your portfolio, stay informed, and make calculated decisions based on the latest economic data.

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Gold’s price rise reflects concerns that world bankers, international monetary authorities (and you and I) should know.  Everyone in the know understands this is unsustainable.  The populous is told everything is fine and just continue to put your trust in the central banks. 

Debt is very, very easy to create with fiat currency.  However, the more debt you make, the less valuable is the previous debt you created.  You can not randomly create gold.  It only inflates at about 1.8% per year.  World governments know this, hence their increased gold holdings.

Not only is debt growing but, of course, the interest due on that debt continues to grow. Tell me, is this sustainable?

Gold price will continue to rise and do very well for the balance of 2024 and into 2025.  We could see $3,000 this year and probably $3,500 to $4,000 next year.  Silver should ride its coattails and maybe outperform.

Finally, I know that the gold price seems high. I have been at this for 30 years. It has always seemed high, and it’s going higher. Dollar-cost averaging in modest amounts on a consistent basis is, and always has been, the best approach.

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Great returns, right?  Well, all the liquidity (money) created by central banks has to go somewhere, right?  So, are all these 1 year asset classes performing well in real terms, or does all this money have to find a home?  People know that if they keep it in the bank at negative real yields, it is depreciating.  Thus, government basically incentives people to buy some asset, any asset with the hope their purchase will outplace inflation, which at its core is M2 (broad money supply) growth.

Money supply growth drives GDP growth – while everyone feels like they are barely treading water or even falling backwards.

What to do?

• Buy precious metals (tangible and private)
• Buy Bitcoin
• Buy technology (the only stock sector I would invest in)
• Buy real estate (do you want the hassle)
• AVOID fixed income and any debt instrument (Bonds,  Treasuries and CD’s are debt instruments)

Click here for Pricing

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In today’s economy, inflation is becoming a major concern for the average American. Prices keep rising, and wages have not kept up, making it increasingly difficult to make ends meet. The dollars that were worked for and saved up are becoming less valuable. Precious metals like gold and silver have historically served as hedges against inflation, as we have mentioned before, and here’s why.

Understanding Inflation

Inflation is the rate at which the general level of prices for goods and services rises, decreasing the purchasing power of currency. When inflation is high, each unit of currency (for example the dollar) buys fewer goods and services. Your dollars do not have intrinsic value, so they are only as valuable as their purchasing power at any given time. This is where precious metals enter the conversation.

Intrinsic Value and Scarcity

Precious metals are inherently valuable due to their scarcity and unique properties. Unlike paper currency, which can be printed in unlimited quantities, the supply of gold, silver, platinum, and palladium is limited. It is impossible to create more gold or more silver than already exists. This intrinsic value means that, even when the value of currency decreases, the value of precious metals often remains stable or even increases. As more money is printed, the price of gold and silver will go up as it takes more dollars to buy these precious metals. This means, that if you own gold and silver, as the dollar inflates, your precious metals maintain or even grow in value.

Historical Performance vs Inflation

This makes sense from a logical perspective, but history has also backed up this claim. Gold and other precious metals have performed well during periods of high inflation. For instance, during the 1970s, when inflation rates in the U.S. soared, gold prices experienced a significant surge. In 1971, Nixon took the dollar off of the gold standard meaning it was no longer backed by precious metals. Gold jumped from $35 pre ounce to $850 per ounce between 1971 and 1980. Investors turned to gold to preserve their wealth, and the price of gold skyrocketed.

Supply and Demand Dynamics

Not only do precious metals maintain their value during inflationary periods, they can often grow in value due to supply and demand. The demand for precious metals typically increases during inflationary periods as people seek to preserve their wealth. Investors seek to protect their assets by purchasing metals, which then leads to higher prices. Additionally, the supply of precious metals cannot be ramped up quickly, ensuring their value remains robust.

Non-Correlated Assets

Precious metals often move independently of other asset classes, such as stocks and bonds. During periods of economic instability, when traditional investments might underperform, precious metals can provide a safe haven. This is why they are called “safe-haven assets”. This non-correlation makes them an effective tool for diversification and risk management.

Conclusion

We believe in the enduring value of precious metals as a hedge against inflation. Their intrinsic value, historical performance, and non-correlation with other asset classes make them invaluable tools for preserving wealth during periods of high inflation. As investors seek stability in uncertain times, precious metals remain a reliable option.

For more on inflation, read our article on inflation here: https://fisherpreciousmetals.com/inflation-the-hidden-tax/

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With the world becoming more and more unpredictable, central banks worldwide are increasingly trading U.S. dollars for gold. There are several compelling reasons behind this shift. By delving into these specifics, we can gain a clearer understanding of how this could influence the price of gold.

Russia

Russia has been at the forefront of this movement, and its central bank has significantly ramped up its gold purchases. They have increased its daily gold acquisition by 700%. This strategy is part of a broader effort to reduce reliance on the U.S. dollar, driven by geopolitical tensions and economic sanctions stemming from the conflict in Ukraine. By holding gold, Russia aims to safeguard its economy from external shocks and assert greater financial independence.

Turkey

Turkey has significantly increased its gold reserves, reaching an all-time high of 584.93 tonnes in the second quarter. This aggressive expansion is part of a strategic move to diversify its foreign exchange reserves and hedge against geopolitical risks. Since 2016, the Turkish Central Bank has added nearly 300 tonnes of gold to its holdings and 14.63 tonnes in 2024 alone.

India

In 2024, India has significantly increased its gold reserves, with the Reserve Bank of India (RBI) purchasing nearly 13.3 tonnes of gold in the first two months of the year. This move is part of a broader strategy to diversify its foreign exchange reserves and hedge against inflation. The RBI’s gold purchases have contributed to a $3 billion rise in forex reserves, reaching $648.5 billion

China

In 2024, China has continued its aggressive gold-buying spree, with the People’s Bank of China (PBOC) purchasing an additional 18 tonnes of gold in the first quarter alone. This move is part of a broader strategy to diversify its reserves and reduce reliance on the U.S. dollar amid ongoing global economic uncertainties. China’s central bank has been transparent about its gold-buying activities, signaling a strategic shift towards greater financial security.

The Case for Trading Dollars for Gold

There are several reasons why central banks are opting for gold over the dollar. First, gold is a tangible asset with intrinsic value, unlike fiat currencies, which can be subject to inflation and devaluation. Second, gold acts as a hedge against economic instability and geopolitical risks. Third, gold’s liquidity and universal acceptance make it a versatile reserve asset.

De-Dollarization Movement

This trend is part of a broader de-dollarization movement in which countries seek to reduce their reliance on the U.S. dollar. By diversifying their reserves with gold, these nations aim to protect their economies from potential dollar fluctuations and economic sanctions. As Americans, it is easy to become self absorbed and internally focused.. However, the world is quickly moving away from the dollar and towards gold. As the dollar becomes less demanded, it will become inflated even more than it already has.

Trading for Gold’s Impact on Prices

As more central banks buy gold, the demand for this precious metal increases, driving up its price. This trend is likely to continue as geopolitical tensions and economic uncertainties persist. For people like you and me, this means gold could become an even more attractive asset, potentially leading to higher prices. Remember, as the dollar continues to lose value through inflation, the price of gold continues to rise.

Future Outlook

Looking ahead, the demand for gold is expected to remain strong. Central banks’ continued shift towards gold is likely to keep prices elevated, making it a valuable asset for both national reserves and individuals. 

The trend of central banks trading dollars for gold is driven by a desire for greater economic security and diversification. As this movement gains momentum, it has the potential to drive gold prices even higher.

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If you’ve been tracking gold prices over the past year, you’ve likely noticed a remarkable trend. Gold keeps climbing, breaking new barriers, and what was once considered a good buying price is now a distant memory. Let’s dive into how gold has surged over the last 12 months and why waiting for a significant drop might be futile. Instead, the best strategy would have been—and still is—to dollar cost average.

A Year of Unprecedented Growth

In the past 12 months, gold has seen an impressive rise. Gold has climbed from around $1,800 per ounce to over $2,500 per ounce. This is a significant increase that keeps pushing the bar higher and higher. Many people I spoke to at the beginning of the surge said, “I will buy once it gets back to $1900.” Which then became $2,000, $2,100, $2,200, etc. The bar kept getting higher and they still hadn’t bought gold.

The Changing Landscape of “Good” Buying Prices

As gold continues to climb and set new records, the benchmark for what is considered a good buying price keeps evolving. Just a few months ago, $2,000 per ounce was seen as a high point. Today, that price seems like a bargain compared to current levels. This constant upward movement has redefined expectations. We tend to have short memories as we will see the price drop 30 dollars one day and think “wow gold has dropped”. We forget and ignore the growth of almost $700 over the last year.

Breaking Barriers: A New Normal AS Gold Climb Continues

Gold’s ability to break through previous resistance levels has created a new normal in the market. Each time gold surpasses a new milestone, it sets the stage for further gains. Investors who were waiting for a dip at $2,000 are now looking at $2,500 and wondering if they should wait for another drop or jump in before prices climb even higher.

The Power of Dollar Cost Averaging

Instead of trying to time the market, a more effective strategy has been—and continues to be—dollar cost averaging. By investing a fixed amount of money at regular intervals, you can mitigate the risk of market volatility and avoid the pitfalls of trying to predict price movements. Instead of being paralyzed by watching the price and anticipating the next fall and subsequent rise, just plan to spend a certain amount at certain intervals. Over time, you will reap the benefits of investing in precious metals and accumulate the precious metals you want. As the gold price climbs over time, you will be able to realize that as you accumulate metals.

Conclusion

The past 12 months have shown that waiting for a significant drop in gold prices might be a losing strategy. Gold’s upward trajectory continues and shows no signs of slowing down. Instead of waiting for a dip that may never come, it might be wise to consider the long-term benefits of dollar cost averaging. You can take advantage of the climb without being paralyzed by watching the price movement.

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1. Adopt a Long-Term Perspective: Precious metals are best suited for long-term investment. Patience is essential, as these assets tend to appreciate over extended periods rather than offering quick returns. By holding onto your investments for several years, you can better weather market fluctuations and benefit from the overall upward trend in value.
2. Steer Clear of Speculative Trading: Avoid the temptation to engage in high-risk speculative trading. Speculative trading can lead to significant losses due to the volatile nature of precious metals markets. Instead, focus on stable, long-term investments that offer more predictable returns and help preserve your wealth over time.
3. Invest in Bullion: Opt for bullion, such as bars, ingots, or coins, over numismatic coins. Bullion is priced at the market rate plus a fair premium, making it a more straightforward and reliable investment. On the other hand, Numismatic coins carry additional value based on rarity and condition, which can be more subjective and harder to predict.
4. Choose Reputable Dealers: Always work with licensed and well-reputed brokers to avoid scams and overpriced assets. Reputable dealers provide transparency in pricing and ensure the authenticity of the precious metals you purchase. Refrain from purchasing from unreliable sources like pawn shops or unsolicited offers, as these can often lead to counterfeit or overpriced products.
5. Understand Market Volatility: Precious metals can be volatile. It’s important to have realistic expectations and measure success over years, not weeks or months. By understanding and accepting this volatility, you can avoid panic selling during market dips and stay focused on your long-term investment goals.
6. Avoid High-Leverage Transactions: High-interest, highly-leveraged transactions carry significant risk and often fail to meet regulatory requirements. These types of investments can lead to substantial financial losses if the market moves against you. It’s best to avoid these transactions and instead invest within your means to maintain financial stability.
7. Educate Yourself Continuously: Stay informed about market rates, premiums, and the behavior of different types of precious metals. This knowledge is crucial for making informed investment decisions. You can better understand market trends, identify good buying opportunities, and avoid common pitfalls by continuously educating yourself.

By following these strategies, you can ensure that you are investing wisely in precious metals.

Happy investing!

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In recent years, central banks worldwide have been buying gold in much larger quantities than in the past. This has potentially negative effects to the US economy, and the dollar. According to the World Gold Council, central banks bought a record 1,081.9 tons of gold in 2022. In 2023, that number was 1,037.4 tons. For context, in 2021, central banks only bought 450.11 tons. 2024 has already shown that it will be no different this year. But what does this mean, and why should you care?

Central banks traditionally hold gold for its stability and value retention. However, the recent surge in purchases indicates a shift in priorities. By boosting gold holdings, central banks aim to reduce their reliance on the U.S. dollar. The dollar has been the dominant global reserve currency. This diversification helps mitigate risks associated with dollar-denominated assets. In other words, the uptick in gold indicates a move away from the dollar, which will have drastic effects on the US economy.

Gold is also seen as a hedge against inflation and economic instability. With high inflation rates and wars all over the globe, central banks are viewing gold as a reliable store of value. Gold is also significantly less susceptible to monetary policy changes than fiat currencies. Additionally, growing concerns about the long-term strength of the U.S. dollar, driven by factors like the rising U.S. national debt and the worsening political climate, motivate these gold purchases. Central banks are preparing for potential declines in the dollar’s value by securing a stable asset.

This trend also aligns with a broader move towards de-dollarization, as countries like Russia and China seek alternatives to the dollar for international trade and reserves. The increased gold reserves signal a cautious outlook on the dollar’s future and suggest a shift towards a more multipolar currency system.

In summary, central banks’ gold stockpiling reflects a strategy of reduced reliance on the U.S. dollar. If the banks are moving some of their holdings to gold instead of the dollar, maybe you should as well.

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Gold prices in 2024 have soared from $2,050 to over $2,350 per ounce. That is over $300 dollars, or an almost 15% jump, since the beginning of the year. This significant movement in the price of gold says a lot about the economy and inflation. The surge in gold prices can be attributed to various factors, but inflation concerns are taking center stage.

The Federal Reserve’s efforts to keep inflation rates in check have faced considerable challenges. This has contributed to the allure of gold as a hedge against inflation. Despite the Fed’s efforts and reluctance to adjust interest rates, inflation has remained stubbornly high. This is prompting investors to seek refuge in assets like gold. Gold is a great way to avoid the negative effects of inflation as it maintains its value while the Fiat dollar continues to lose buying power.

There is no reason not to think gold prices’ upward trajectory will continue throughout the remainder of 2024. With ongoing concerns about inflationary pressures persisting (not to mention a turbulent geopolitical sphere), gold is expected to maintain its allure as a safe-haven asset. Investors are closely watching developments in global financial markets, geopolitical tensions, and central bank policies for clues on the future of gold prices. As uncertainty looms over the economic landscape, gold stands out as a beacon of stability.

With all of this in mind, if you haven’t bought any gold yet this year and think you may have missed the opportunity, you haven’t. There is still reason to be concerned over the economic landscape, and gold remains a hedge against inflation. Gold is maintaining its growth and it is never too late to protect your wealth from inflation.

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