On October 7, 2025, gold reached a historic milestone, trading at $4,009.40 per ounce, up $129.20, or 3.33%, for the day. This surge reflects a broader trend of investor interest in alternative assets, including gold, silver, and cryptocurrencies, as market participants respond to economic uncertainty, declining interest rates, and elevated stock market valuations. Gold has already gained more than 50% in 2025, climbing faster than during past crises such as the 2007–2009 recession and the pandemic, and analysts forecast it could rise further, potentially reaching $4,900 per ounce by late next year.
Multiple factors fuel the price increase, including concerns over a potential recession, slowing business spending, and geopolitical uncertainty, prompting investors to seek safe-haven assets. Central banks worldwide continue to purchase significant amounts of gold, making it the second-largest reserve asset after the U.S. dollar. Meanwhile, traditional measures of economic performance, like gross output, suggest underlying weakness in business activity, reinforcing gold’s appeal as a hedge against volatility.
While gold mining stocks and ETFs offer exposure to the market, physical gold and cost-efficient ETFs such as SPDR Gold Shares (GLD) or GraniteShares Gold Trust (BAR) provide a more stable, lower-risk avenue for individual investors seeking portfolio diversification. These vehicles eliminate custody challenges while giving investors direct access to gold.
The Cardiff Connection
While an appealing investment option, Dean Lyulkin, CEO of Cardiff, emphasizes that investors should view gold as “insurance,” not a speculative investment. He recommends a modest allocation of 5–10% of total assets to protect portfolios against economic and currency risks while maintaining long-term growth potential. Lyulkin notes that today’s gold environment, though strong, is less extreme than past crises like 2005–2011, emphasizing measured exposure rather than chasing rapid gains.
This approach balances opportunity and prudence. Gold offers protection against geopolitical uncertainty and currency fluctuations. It uses this asset strategically rather than chasing short-term gains.
