The early months of 2025 have ushered in a flurry of changes in financial markets, primarily caused by the new US presidential administration.

The world's primary precious metal commodity, gold, is surging in an atmosphere of largely declining investor sentiment. This is hardly surprising to anyone familiar with the history of financial markets.

Gold has always done well when stocks are under pressure and the outlook for growth-dependent assets is souring.

Drastic cuts to US public spending, the threat of tariff wars and a new paradigm in the relationship between the US and its trading partners have unnerved markets and caused stock prices and investor sentiment to seek “risk off” posture and seek safe haven investments.

At $4,000 + troy ounce of gold, a record that is roughly double what it was three years ago. Gold has been appreciating in value at a record pace as many other financial assets struggle.

Gold has been valued by humans for over 6,000 years, with its earliest known use dating back to around 4000 BC for decorative objects. It became a significant medium of exchange with the first gold coins minted in Lydia around 600 BC, and throughout history, gold has played a crucial role in various cultures as a symbol of wealth and power.

Billionaire Ray Dalio has renewed his warnings about the declining trust in the U.S. dollar amid soaring national debt, positioning Bitcoin and gold as key hedges against fiat currency devaluation. - 2025

Investors are hedging their bets against dollar dominance Citadel's Ken Griffin. “We're seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize or de-risk their portfolios vis-a-vis U.S. sovereign risk," - 2025 Bloomberg.

J.P Morgan's Nikolaos Panigirtzoglou in a 2025 report observed that retail investors, in particular, were leaning into the debasement trade " a hedge against a catastrophic scenario," private investors—individuals as well as family offices—have started to put a premium on "privacy and tangibility" of gold since the pandemic and have been buying gold bars and coins .

Gold has long been regarded as a store of value and a hedge against economic instability. Its intrinsic value, scarcity, and historical reliability make it a safe haven asset during periods of market uncertainty.

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