Gold Breaks $3,000/oz: Why Conservative Investors Should Hold Tight

In mid March, gold shattered yet another psychological barrier, this time by surging past $3,000 per ounce and even rising over $3,100 just a few days later. Justifiably, this sparked widespread jubilation among most precious metal investors. However, at the same time, there were some voices calling for profit taking, or even confidently declaring that the yellow metal had “topped” and it was time to sell. After all, it has indeed climbed steadily from its 2020 low of around $1,700/oz, delivering a roughly 76% gain in just five years. However, gold’s story is far from over, and all of the economic, geopolitical, and monetary forces driving its trajectory suggest it has room to run—especially over the long haul.

“Gold Breaks $3,000/oz: Why Conservative Investors Should Hold Tight” was taken from BFI Bullion’s recent quarterly newsletter, the Digger, published on April 16, 2025. To read this latest quarterly Digger in its entirety, click here.

Selling Now Misses the Bigger Picture

Central banks all over the world continue to struggle with ever increasing debt, stubborn inflationary pressures, and the lingering impact of years of ultra-loose monetary policies. Despite the central bankers’ wishful thinking, inflation remains a challenge, especially in the real economy. Official consumer price figures largely understate the real erosion of purchasing power, something that gold investors have long recognized, but even this data shows that the inflationary wave of the past years has proven to be “sticky”.

At the same time, the USD, long established as the world’s reserve currency, faces growing skepticism from countries like China and Russia that keep stockpiling gold while they explore alternatives to the dollar-dominated global monetary system. Even without these pressures though, the long-term trajectory of the USD, and of all fiat currencies for that matter, is clearly downward.

The US national debt now exceeds $35 trillion, with no credible plan to reverse this trend anytime soon. Interest payments alone devour an astounding share of the country’s budget, forcing the Treasury to issue even more debt and the Federal Reserve to keep rates artificially lower than what the real economic situation calls for. It is all contributing to a never-ending vicious circle that will only spare those who hold real assets and especially precious metals.

Implications for investors

For conservative investors, physical gold has always been about preservation of wealth and protection from State overreach and fiscal excesses, rather than speculative gains. The fact that the metal has now risen above $3,100/oz doesn’t change the fundamental investment case for it. To the contrary, it enhances it. Selling one’s position now will certainly yield a profit, but it will come at the cost of abandoning the most reliable and time-tested hedge, just as the global economy enters what many analysts and economists see as a period of great uncertainty. Selling at $3,100/oz might feel like a “victory”, but it’s actually a retreat from a winning strategy. It’s a bet against the very conditions—inflation, geopolitical and economic uncertainty—that convinced conservative investors to buy gold in the first place.

It is also crucial to keep in mind that the investment horizon of those who buy and hold physical gold for the right reasons is not the same as that of the average stock market speculator. A lot of our clients at BFI Bullion don’t think in months or even years, but in generations. In this context, the $3,000/oz or $3,100/oz record isn’t all that impressive. In the 1970s, gold rose from $35/oz to $850/oz—a 2,300% increase—driven by inflation and the collapse of the Bretton Woods system. Of course, the gold standard cannot die a second death, but there are different structural shifts that can happen, as we discussed in a recent article on our blog.

Finally, gold investors must remember that hedging against currency debasement and the fiscal wantonness of the State is not the sole reason to hold physical precious metals. They also provide protection against different kinds of government excesses and risks, including legislative overreach attempts and threats to individual financial sovereignty and privacy. This is why it is more important than ever not only to hold physical gold, but to hold it in a safe, predictable jurisdiction with a time-tested record of respect toward private property rights.

>> Read the entire Digger here.

‍