Gold — long considered a safe-haven asset — is showing renewed strength in global markets. Since November 14, the precious metal has surged by 32%, rebounding from a low of $2,536 an ounce in the days following Donald Trump’s election victory over Democratic rival, former Vice President Kamala Harris.
But this surge isn’t just a market blip — it’s underpinned by a broader shift in global sentiment, policy, and investment strategy.
Central Banks Turn to Gold with Historic Confidence
According to a recent World Gold Council (WGC) report, global central banks are doubling down on their trust in gold. Of the 73 central banks surveyed, an overwhelming 95% expect to increase their official gold holdings over the next 12 months — the highest figure recorded since the survey began in 2019.
The 2025 report shows a 17% increase from 2024’s results, underscoring growing global momentum behind precious metals as a cornerstone of reserve strategy.
A Quiet Shift Away from U.S. Dominance
More telling, however, is the geographic movement of gold reserves. Central banks are repatriating their gold back to domestic vaults, moving assets away from the United States. This shift signals more than logistical convenience — it reflects a growing loss of confidence in U.S. assets, particularly amid rising political uncertainty and concerns over fiscal discipline under the Trump administration.
Many governments and institutional investors are now questioning the once-unshakable dominance of U.S. Treasuries, especially as the country grapples with deepening debt and inflationary pressures.
Gold, by contrast, is emerging as a neutral, non-sovereign asset that offers both liquidity and insulation from geopolitical risk — a key reason why it’s gaining favour across continents.
The Case for Gold as a ‘Critical Mineral’
In this shifting economic landscape, gold may soon move beyond its traditional role as a hedge and be reclassified as a ‘critical mineral.’ While not essential to industrial supply chains in the way lithium or cobalt are, gold plays a vital role in economic security and financial stability.
Its rising strategic value, central bank demand, and potential decoupling from U.S.-centric financial systems all point to gold becoming a key pillar in sovereign reserve strategies for the foreseeable future.
Miners Outperform the Metal
Interestingly, it’s not just gold that’s shining — gold mining stocks have outpaced the metal itself. This trend may be driven by several factors:
- Higher dividend expectations as profits rise
- Investor recognition of capital discipline, with companies showing restraint and efficiency in recent years
- A growing belief that gold miners will play a more strategic role as gold cements its place in both public and private portfolios
Investors may also be re-rating these companies with the belief that gold demand is not just cyclical — but structural.
What This Means for the Future
Whether you’re a retail investor, a central bank, or a fund manager, the message is clear: gold is back in focus, not just as a historical safe haven, but as a modern-day cornerstone of diversified investment portfolios.
As the world redefines what constitutes a critical asset — in light of shifting power structures, fragile economies, and uncertain markets — gold and its miners may no longer be optional. They may be essential.
Source: An extract of Clyde Russell’s Reuters report.
