Gold Shatters Records: Why Gold’s Surge Signals Trouble for the Dollar

Gold keeps smashing records in 2025. The precious metal hit $3,656 an ounce on September 15—up more than 40% since the start of the year, and a staggering $1,600 higher than just two years ago. For many Americans, this isn’t just a financial story—it’s a referendum on the health of the U.S. economy, the direction of our politics, and the future of the dollar itself.

Why Gold is Surging

Several forces are converging to fuel this modern-day gold rush.

The Federal Reserve and rate cuts: With the Fed preparing to cut interest rates again, gold becomes more attractive compared to government bonds. This dynamic was seen in 2008, 2020, and most recently in August 2024—each time sparking waves of gold buying.

Soaring U.S. debt: Washington’s addiction to deficit spending and entitlement promises has left the nation with an unsustainable fiscal burden. As portfolio manager Thomas Winmill points out, the only way to keep the system afloat is by printing more dollars—destroying purchasing power and pushing savers toward hard assets like gold.

A weakening dollar: The dollar has suffered one of its weakest first halves in decades, making gold cheaper for foreign buyers and fueling even greater demand. Inflation that remains above the Fed’s target only adds to gold’s appeal as a store of value.

Central bank buying: Emerging-market central banks are hoarding gold at record levels to shield themselves from dollar instability and global debt risks. This steady buying spree creates a floor under gold prices and signals distrust in the current global financial order.

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Echoes of 1979

This year’s rally is the steepest since 1979, when stagflation crushed the economy and gold became a safe haven. Today, analysts warn of a similar threat: sluggish growth, high prices, and reckless government policy. 

Hedge funds have taken note, parking nearly half of their commodity holdings in gold. ETFs tracking physical gold have also ballooned, with U.S. inflows up 43% this year alone.

Should Americans Sell or Hold?

For long-time holders, selling gold may make sense if they’re near retirement and want to rotate into real estate or other income-producing assets. But for most savers, experts argue gold still deserves a place in the portfolio—typically 3–10% as “financial insurance.”

Jose Gomez of Summit Metals put it plainly: “One should hold gold until it can be converted to the dollar, to then make another investment purchase without losing the original buying power.” In other words, gold’s role isn’t to generate yield—it’s to defend your wealth when Washington and Wall Street fail.

Related: Why Americans are Buying Gold and Silver in 2025

A Political Metal

Conservative figures from Ben Shapiro to Michael Savage have promoted gold as a way to diversify retirement savings, emphasizing its role in balancing stock-heavy portfolios.

Their argument has merit. In an environment where the U.S. dollar faces ongoing challenges, inflation reduces purchasing power, and global shifts create uncertainty, gold offers a time-tested hedge.

Holding a portion of wealth in precious metals is about adding stability, protecting long-term savings, and reducing reliance on any single asset class.