Opinion: Here’s why gold is a strategic investment in an increasingly unpredictable economy

Most people learn that, at some point in American history, the so-called “Gold Standard” was an official fiscal policy preventing depreciating currency values. In fact, many saw the standard as a way to prevent individuals’ wealth & savings from declining in value, as precious metals tend to be far less in supply and, subsequently, remain high in price value. However, now may be the right time to invest in gold, but for different reasons.

The Wall Street Bull.

Evidently, locking in your savings in gold is a strong concept. As the Federal Reserve pursues back-to-back, monthly interest rate reductions after September 2025 with yet another 25 basis point cut expected in November, the U.S. Dollar becomes very vulnerable to price fluctuations; in the short-term, the USD will remain high in value as it is now as interest rates remain higher than most other global central banks, but as the Fed gets closer to equilibrium with foreign interest rates, the demand for dollars will decrease, leading to a drastic plummeting in valuation. Over the near future, perhaps the next 6 or so months, the USD remains safe, but long-term, it could see the largest value correction it’s ever experienced since the 2008 Recession. This is why you’re seeing the current Trump administration buy up large sums of stock and cryptocurrencies, as a way to prepare for such an event while maintaining or even growing the value of their reserves. The Strategic Bitcoin Reserve in the U.S. executive branch is projected to have accumulated roughly 200,000 BTC, or $14 billion in crypto.

However, gold has surged in value over recent months, not just maintained its high value. The most influential factor in this is gold’s limited supply not keeping up with demand, as more individuals pursue the gold trade; this has led to a linear trend upward in the value of gold, with it recently making all-time highs at over $4,300 per troy ounce, far exceeding the long-term growth of the USD, which recently took a small hit, and cryptocurrencies like Bitcoin and Ethereum, which did recently hit all-time highs but almost immediately fell, reversing many of their gains. Gold, along with its cheaper counterpart silver, will be neither of those two: it will make gains, and hold onto said gains. The only way for gold prices to plummet is if more supply enters the market, but with it being a precious commodity, this is highly unlikely (unless we discover gold on another planet). 

Even if you may not have enough money to buy an entire gold bar (which is understandable), you could invest any amount of money into gold trusts or equivalent stocks which represent companies/firms that hold substantial amounts of gold. Just like how many crypto investors are active on heavy Bitcoin-holder MicroStrategy, gold traders may look into the iShares Gold Trust or the SPDR Gold Trust. But, there are some concerns with investing in these funds, like the fact that it is the fund manager, not you, who controls how gold is transacted.

If you’re a more experienced trader, perhaps cryptocurrencies may be a far more profitable alternative asset itself, as it constantly produces very strong growth than gold. However, these assets are far more volatile and high-risk, meaning that in the long-term, gold actually surpasses them in overall value. If you’re a less experienced investor or do not want to engage in the complexities of the economy/markets, gold is a very easy way to maintain or grow your wealth.