GOLD has smashed through $5,000 for the first time today as “investors switch to the safe haven of gold” over global instability of Donald Trump’s making.
Gold hit the milestone in trading today and is currently nearing $5,100 after a “perfect storm” of geopolitical tension, including Donald Trump’s claims over Greenland, regime change in Venezuela, strikes in Iran, continued conflict in Ukraine and a rotation out of US Treasuries into safe-haven assets.
It’s risen hugely in a short amount of time – it was at $2,772.50 a year ago today.
Silver also raced past $100 an ounce last week as it reached the century milestone for the first time.
Silver is today trading at over $110 and it has also risen hugely in a short amount of time – it was just $30.71 a year ago today.
Industrial demand, specifically from the AI, solar, and EV sectors are driving demand – as well as the same geopolitical pressures.
Gold will be popular this week
Cameron Parry, Founder & CEO at TallyMoney, said the “real” value of traditional, or fiat, currency like the US Dollar and Pound Sterling is reducing.
He added: “Gold is showing us the increasingly rapid decline of the real value of fiat currency. The day the gold price breaks $5,000 an ounce is the same day the gold price breaks £120,000 a kilo.
“Gold has hit another new high – but it is equally true to say fiat currency hits another new low.”
Jim Tannahill, Managing Director at London-based Suttons and Robertsons, said he is seeing popularity in silver and gold spike.
He continued: “We’ve definitely seen more silver coming through the door in recent months – mainly silver plates and bowls that people have inherited and don’t know what to do with, as they’ve not been worth much.
“Suddenly they’re the ‘dish of the day’ because prices have rocketed and people are getting meaningful value from selling them. With gold hitting $5,000 today and the tax payment deadline looming, I anticipate gold will be popular this week.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said Trump was to blame and the gold rush will keep going.
He added: “Donald Trump’s desire to rewrite the international political framework single handed and also rising global instability has investors switching to the safe haven of gold. With Trump’s term no where near over, the gold rally may continue.”
The gold rally may continue
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said you should be wary of investing in gold and silver.
She continued: “Silver above $100 is a loud signal that the paper market is being stress-tested by physical demand. The squeeze is visible in Comex (trading platform) as price rose, silver volume eased, which is consistent with shorts finding it harder to stay in the game.
“Gold is in a classic bull market so it reaching $5,000 was a matter of timing. For ordinary investors, the real issue is currency debasement: treat metals as insurance, avoid leverage, favour allocated/fully-backed exposure, and size positions so you can endure pull-backs.”
Treat metals as insurance
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said you should only invest in gold and silver as an “insurance policy”.
He added: “Gold is an insurance policy, not a lottery ticket. This surge is fuelled by a ‘perfect storm’ of geopolitical tension, including Greenland, Venezuela, Iran, and Ukraine, and a rotation out of US Treasuries into safe-haven assets. Silver’s rise is further intensified by a massive industrial supply deficit driven by the AI and green energy sectors.
“Average investors can participate through Exchange Traded Fund (ETFs), mining stocks, or by purchasing physical bullion and fractional gold via digital apps. However, caution is vital. Buying at all-time highs carries significant ‘pullback’ risk if diplomacy stabilises.
“Investors should also watch out for high dealer premiums and scams targeting retirees. Unlike stocks, metals pay no dividends, so they function better as a portfolio ‘insurance policy’ than a primary growth engine. Keeping exposure to 5%–10% of your total assets remains the standard recommendation for stability.”
