The Perfect Storm for Gold

Gold has officially entered uncharted territory, breaking through $2,800 per ounce for the first time ever as investors seek protection from multiple global risks. Central banks purchased a record 1,200 tons in 2025, led by China, India, and Turkey who continue aggressive accumulation programs. The metal's 45% gain this year has been driven by persistent geopolitical tensions, currency devaluation fears, and uncertainty surrounding the upcoming U.S. presidential transition. Physical demand remains extremely strong with Costco reporting $2 billion in gold bar sales and premium bullion dealers completely sold out of 1oz coins. Silver has followed with a 60% rally while platinum and palladium lag behind.

The Central Bank Gold Rush

Mining stocks are exploding higher with the GDX up 120% YTD. Analysts now predict $3,000 gold by spring 2026 as the perfect storm of factors continues. The shift away from U.S. dollar reserves has accelerated dramatically — Russia, China, and India now hold more gold than U.S. Treasuries in their foreign reserves for the first time ever. The World Gold Council reports that 40% of central banks plan to increase gold holdings in the next 12 months. Even retail investors are piling in through ETFs, with GLD seeing its largest monthly inflow ever in October.