The Free Press: James Grant: The Case For Buying Gold
Gold prices topped $3,500 per ounce this week. The metal continues to perform strongly in 2025. While stocks are still in correction territory, gold is up nearly 30%.
The metal has risen quickly in recent weeks, and may need to take a breather for a bit. But the fundamental reasons for gold’s rise remain intact. And since that’s the case, investors could be on track to see further returns in the metal this year.
Unlike in the 2010-2011 gold bull market, retail investors have been largely absent in this rally. Instead, it’s been central bankers making the big buys. That includes China, which may be liquidating dollars to buy gold. But also countries like Russia and Turkey.
With many nations around the world pulling back from international trade, gold stands out as a strong reserve holding. Rising political fears and monetary disorders make a strong case for holding gold.
With talk of an audit of America’s gold holdings at Fort Knox, some see more room ahead for gold.
That’s because there could be some use of that gold. It could be sold in part to acquire bitcoin or pay down the national debt. Or it could be used to back the U.S. dollar.
Either way, things are shaping up for a further increase in gold’s price in the months ahead. The next few weeks may be volatile, but could be a worthwhile time to add to gold or gold stock holdings.
