In today’s world of economic uncertainty and geopolitical unrest, one thing is clear: gold remains the cornerstone of financial security. In 2024, gold had its best year since 2010, surging an incredible 26%. This wasn’t just luck. It was a response to deeper problems in the global economy — problems that are just as relevant in 2025.

Central Banks and the Dollar’s Waning Power
Central banks around the world are making bold moves, significantly increasing their gold reserves. Why? The answer lies in the cracks forming in the U.S. dollar’s dominance. When the current administration weaponized the dollar — sanctioning and freezing Russian assets — many nations saw the risks of relying too heavily on the greenback.

The BRICS+ nations have taken notice. They’re working together to reduce their dependence on the U.S. dollar and build reserves in something more reliable: gold. With a history of stability and no counterparty risk, gold has emerged as the clear alternative. This shift is a wake-up call, highlighting the vulnerabilities in the financial system and reinforcing gold’s role as a true safe haven.

Geopolitical Risks Pushing More Demand
The world is not short on conflict. The war in Ukraine has destabilized Eastern Europe and drawn Western nations into prolonged uncertainty. In the Middle East, tensions are boiling over — from the volatile situation in Israel, to Syria and Iran’s growing friction with its neighbors. These flashpoints aren’t just local issues; they threaten to disrupt global trade and energy supplies, creating ripple effects felt around the world.

This is where cause and effect comes into play. For example, sanctions against Russia didn’t just isolate one country — they prompted a global rethinking of financial alliances, pushing nations toward gold. Similarly, wars lead to higher energy prices, fueling inflation and weakening economic stability, which further drives investors to gold as a hedge. It’s a cycle that shows no sign of slowing down.

President Trump 2.0
At home, we’re seeing big changes in both politics and monetary policy. With President Trump back in the White House, his pro-growth agenda — featuring lower taxes, slashing government waste, deregulation, and tariffs — has given markets a boost. But there’s a flipside to consider. Tax cuts may stimulate growth, but they also reduce government revenue at a time when our national debt has ballooned past $36 trillion. Inflation, already a concern, could become even more pressing under these conditions.

Meanwhile, the stock market is hovering near all-time highs. On the surface, that might seem like a good thing, but seasoned investors know better. Market valuations have become dangerously rich, with the S&P 500 trading at levels far above historical norms. Even the "Oracle of Omaha” — Warren Buffett — is playing it safe, sitting on record amounts of cash rather than diving into overpriced stocks. When legends like Buffett take a step back, it’s a signal that the market may be teetering on the edge of a correction.

For Americans, this is a reminder: overvalued markets are risky. Investors looking for safety are turning to tangible assets like gold, which offer both stability and long-term value.

The Effect of Monetary Policy Change
The Federal Reserve is making waves of its own. After three rate cuts in late 2024, more are expected in 2025. Lower rates reduce the cost of holding gold, making it an increasingly attractive asset. But here’s the real question: how much longer can the U.S. sustain its ballooning debt before the system starts to crack?

Economic warning signs are flashing everywhere. Manufacturing is slowing. Consumer confidence is shaky. Housing and employment figures are less robust than they appear. Add to that the precarious balance of a stock market at record highs, and it’s clear we’re walking a financial tightrope.

The combination of overvalued equities, rising debt, and geopolitical shocks creates a fragile environment. This isn’t speculation — it’s the natural consequence of cause and effect. And that’s why gold remains such a compelling choice.

A Time-Tested Solution
Gold’s appeal isn’t just about reacting to fear. It’s about planning for the future. Gold thrives in times of uncertainty, but its true value lies in its role as a long-term store of wealth. For Americans concerned about the dollar’s future, gold provides a tangible, proven way to protect what you’ve worked so hard to earn.

Institutions like JP Morgan, Goldman Sachs, Citi, and Bank of America all forecast gold to reach $3,000 per ounce by the end of 2025. While their confidence is based on strong demand dynamics, smart investors will stay vigilant. Factors like improved inflation levels or changes in central bank policies, such as reduced gold purchases or shifts in interest rates, could influence this trajectory. However, history gives us a clear precedent: during President Trump’s first term, gold surged by 53%, driven by rising debt and lower interest rates. These same conditions are expected to persist, setting the stage for continued strength in gold’s performance.

Gold isn’t just a precious metal; it’s a timeless safeguard against uncertainty and a proven cornerstone for investors seeking to build and protect their wealth. Investing in gold isn’t about short-term speculation, it’s about long-term preparation and ownership to preserve wealth. As we face the uncertainties of 2025, the real question isn’t whether you can afford to invest in gold – it’s whether you can afford not to.

Since 2017, Allegiance Gold has earned a reputation for excellence through education, transparency, and strong relationships. The company earned an A+ from the Better Business Bureau (BBB), a AAA rating from the Business Consumer Alliance (BCA), a 5-star rating from TrustLink; and 4.9 stars from TrustPilot. Allegiance Gold was also recognized on the Inc. 5000 list of fastest-growing private companies in 2023 and 2024.

As a regular contributor to financial media outlets, Ebkarian shares valuable insights on precious metals, underscoring his commitment to educating and empowering investors. He holds a Bachelor of Science in Finance. Beyond his professional pursuits, Alex enjoys spending time with his wife and two sons, building a legacy for future generations.