One Rental At A Time WHY ARE GOLD & SILVER AT RECORD HIGHS???
Oct 16, 2025
Gold and silver are at record highs—what does this mean for the market? The conversation dives into how geopolitical events, like the Russia-Ukraine conflict, have shifted foreign reserve strategies toward these precious metals. Political motivations are causing nations to prefer gold over US Treasuries. The effects of a weak dollar also play a crucial role. Is the current gold surge sustainable? Insights into portfolio strategies reveal why investing in gold miners can be more advantageous than physical gold. Plus, a comparison of crypto with traditional risk assets adds an interesting twist!
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Asset Flight From Treasuries To Gold
- Western actions freezing foreign U.S. assets drove large buyers to seek non-political stores of value like gold.
- That shift helped push gold and silver to multi-decade highs as foreign governments reallocated reserves.
Foreign Reserves Tilt Toward Gold
- Foreign governments now own more gold than U.S. Treasuries for the first time since the 1990s, signaling waning trust in U.S. holdings.
- That reallocation acts as a political rebuke and supports precious-metal price momentum.
Global Currency Devaluation Pressures
- A concurrent global race to devalue currencies and central-bank actions has further weakened the dollar versus other currencies and assets.
- A weaker dollar amplifies demand for gold as an alternative store of value.