Gold: The attractiveness of gold will continue to increase

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The big awakening of gold investors has begun

Gold is a remarkable metal. No one needs it, but everyone wants it. Even the bitterest enemies accept it as compensation at the end of their disputes, and gold has always been attributed a certain value in all cultures and throughout all times. This value fluctuated, sometimes quite dramatically, but it became completely worthless.

Gold has never been so valuable in its history.

This applies not only to gold but also to silver, while many stocks and bonds are now completely worthless, and dilapidated properties are only worth the land on which they were once built. Throughout its history, gold has also been a means of payment. Above all, however, it has always been a proven means of

Value storage.

This function as a store of value has become more prominent in investors' minds since the end of the coronavirus pandemic. Initially, high inflation alarmed people, and many remembered that gold represents an excellent hedge against inflation. Inflation has since declined somewhat, but

the rise of gold continues indefinitely.

Central banks ultimately trust only gold

Behind this development are the ongoing gold purchases by central banks. They are not buying gold to protect themselves against inflation. They are acquiring the yellow metal because they know that, unlike the US dollar, euro, yen, and Swiss franc, it represents an investment that cannot default. Gold is not a claim, and it cannot be increased at will. Nor is gold under the control of a single state or

Union of states. This is quite different with national currencies . They represent a

They represent a payment claim against the respective central bank and can therefore default, because states that can no longer service their debts and go bankrupt are much more common in history than states that have fully repaid their debts. The fact that central banks today buy gold and store it in their vaults, but at the same time avoid government bonds denominated in US dollars or euros, is a very clear vote of confidence in gold and, at the same time, considerable evidence of doubt and mistrust towards the bonds of other states, even though some of these bear quite high interest rates.

The big awakening of gold investors has begun

There's a good chance that, in retrospect, 2025 will be seen as the year in which the world, in general, slowly began to turn its back on paper money. Such a process never happens overnight. It's a gradual process. However, it can be significantly accelerated by various catalysts. The inauguration of Donald Trump was one such catalyst, as the US president's dramatic negotiating tactics and approach initially startled investors and then slowly woke them up. Old, supposedly safe assumptions, such as that the US dollar was safe and that the US would pay its debts, suddenly no longer apply since January 20, 2025. They were replaced by

pure uncertainty.

The stock market hates nothing more than this uncertainty, so it's no surprise that, against this backdrop, the price of gold continued to rise sharply, while individual bonds suffered losses of up to 50%. Anyone who buys speculative stocks is used to losses of 50% or more. They're practically part of the investment strategy and are offset by triple-digit gains.

The shock to bondholders will have massive consequences in the long run

But an investor who buys bonds doesn't want spectacular profits, but above all, security and precisely calculable income. These investors will be shaken to their core if the price of their investment is suddenly worth only half. This aspect cannot be emphasized highly enough, because it is precisely at this critical point that bondholders differ from shareholders. The consequence of the uncertainty further exacerbated by Donald Trump was a massive flight to gold. This has now calmed somewhat. But there is much to suggest that this calm is only the calm before the next storm. Not only in the US, but in most countries, the debt problem is far from resolved. At the same time, there is currently no shortage of geopolitical conflicts. The question is not whether investors will soon remember gold again, but only when the next surge will occur. That it will come is clear. Not for nothing.

JP Morgan and Goldman Sachs have always revised their price forecasts for the yellow metal

raised again.

A long-term bull market lies ahead for the gold sector

Even gold prices of $4,000 and more are not the bold dreams of doomsday prophets, but rather the sober calculations of Wall Street analysts who are simply mathematically examining what will happen if the flight to gold continues to dominate investors' thinking. The gold market is far too tight to sustain a massive and sustained flight of investors from gold without further massive price increases. What is taking place is nothing more and nothing less than a fundamental paradigm shift. Therefore, you shouldn't be surprised if, in January 2029, when Donald Trump leaves the White House, the general consensus is that the beginning of his presidency

was a very good time to buy gold.

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