The World Gold Council just released their 2025 Outlook Report, which highlights several reasons why we could expect to see more gains in the price of gold next year. As we step into an uncertain economic climate, gold bars and gold coins continue to shine as reliable and strategic assets for investors.

Persistent Economic Uncertainty

The global economy is still grappling with the aftermath of a tumultuous 2024, marked by geopolitical tensions, slowing growth, and inflationary pressures. Central banks worldwide remain cautious, balancing interest rate policies against fragile economic conditions. This environment has historically been favorable for gold, as it serves as a hedge against both inflation and economic instability. Investors seeking a safe haven in turbulent times often turn to gold, driving demand and, subsequently, prices.

One of the standout trends of recent years has been the aggressive gold buying by central banks. In 2024, central banks set new records for gold acquisitions, signaling their confidence in the metal as a store of value. The World Gold Council anticipates this trend will continue into 2025, as nations seek to diversify away from fiat currencies like the U.S. dollar. This consistent demand provides strong support for gold prices and underscores its role in global financial systems.

A Softer U.S. Dollar

The strength of the U.S. dollar plays a critical role in gold’s performance. Over the past year, the dollar has shown signs of weakening due to rising national debt levels and shifting monetary policies. A weaker dollar typically boosts gold prices, as it becomes more affordable for investors holding other currencies. Analysts suggest that continued pressure on the dollar in 2025 could act as a tailwind for gold’s upward momentum, even with a President Trump in the White House.

Gold has long been a go-to asset during periods of market volatility and geopolitical uncertainty. With ongoing conflicts, trade tensions, and power shifts in the global arena, investors are likely to seek refuge in tangible assets like gold. The World Gold Council’s report highlights that these factors are not just short-term phenomena but could persist well into the coming year, supporting gold’s appeal as a hedge.

Beyond central banks, individual and institutional investors are showing renewed interest in gold. Exchange-traded funds (ETFs) backed by gold saw increased inflows in 2024, and this trend is expected to carry forward. Investors are recognizing the benefits of diversifying their portfolios with gold, particularly as traditional equities and bonds face headwinds. Tangible assets like gold provide a balance that can protect against market downturns and preserve wealth over the long term.

Why Now is the Time to Add Gold to Your Portfolio

Given these compelling factors, now might be an ideal time to consider adding gold to your financial strategy. Diversification is always a wise approach, and gold’s unique position as both a hedge and a growth asset makes it invaluable in today’s economic landscape. Whether you’re investing in bullion, coins, or rare collectibles, gold offers a level of security and stability that few other assets can match.

As 2025 unfolds, all signs point to a favorable environment for gold investors. The World Gold Council’s report underscores the many reasons why gold should continue to be a cornerstone of any well-balanced portfolio. Don’t wait for uncertainty to force your hand; take a proactive step today and secure your financial future with gold.

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