Why did gold rally so much in 2025 according to Fidelity International?

Fidelity International cited central bank buying, declining interest rates, and high fiscal deficits as key drivers for gold's 2025 rally.

What is Mike Wilson's portfolio allocation advice for gold?

Mike Wilson advises allocating 20% of one's portfolio to real assets like gold, suggesting a 60/20/20 split instead of the traditional 60/40.

How much gold do US investors own according to Goldman Sachs?

Despite the 2025 rally, gold ETFs constituted only 0.17% of private US financial portfolios as of December, below the 2012 peak.

Home / Business and Economy / Gold Surges: Why Investors Are Betting on More Gains

Gold Surges: Why Investors Are Betting on More Gains

10 Jan

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Summary

Gold experienced its strongest rally in nearly half a century in 2025.
Central bank buying is expected to be a major driver of future price increases.
US investors hold lightly in gold, despite its record-breaking performance.

Gold Surges: Why Investors Are Betting on More Gains

Gold experienced an explosive rally in 2025, its strongest performance in nearly fifty years, surpassing inflation-adjusted records from 1980. This surge occurred amidst falling interest rates and geopolitical tensions. Despite the historic gains, many US investors continue to hold gold lightly. Portfolio managers are largely maintaining their positions, anticipating further price appreciation driven by sustained central bank purchases and declining confidence in major developed-market currencies.

Key factors supporting gold's continued appeal include increasing sovereign debts and attacks on central bank independence. These elements contribute to gold's positioning as an 'anti-fiat currency play'. Experts suggest reallocating portfolios to include real assets like gold as a hedge against inflation. While the mainstream understanding of this 'debasement trade' has grown, many believe gold's price is not yet fully reflecting these underlying economic trends.