Gold has just recently passed euro. It is now the second most-held reserve asset in the world, reflecting major changes in investor sentiment and central bank policy. Meanwhile, the yellow metal is soaring in 2024, up an astounding 26% already. It hasn’t slowed down in 2025, with another 26% jump. Consider that central banks around the world have been net buyers of more than 1,000 tons of gold annually for three consecutive years. This record level of purchases demonstrates a clear and increasing demand for gold as our economy continues to face so many unknowns.
No matter how hard the White House tries to ignore it, the world is slowly but steadily moving away from the U.S. dollar—a trend that’s being called de-dollarization. This transformation has important consequences for gold. Even with a deeply entrenched bearish outlook on gold predictions from Wall Street, many now contend that the pessimism is misplaced. Mike Maharrey, a noted financial analyst, insists that investors should remain focused on long-term fundamentals rather than being swayed by short-term market fluctuations or institutional analysis.
Central Banks and Gold Demand
Central banks have been aggressively adding gold to their holdings. This trend is another strong indicator of gold’s increasing role in global financial systems. Combined, these institutions have added more than 3,000 tons of gold to their collective holdings in just the past three years. This trend reflects a strategic pivot by countries aiming to diversify their reserves and mitigate risks associated with dollar dependence.
Maharrey further points out that concern is growing around the world about America’s use of the dollar as a foreign policy weapon. Increasingly, countries are taking decisive steps to bolster their gold reserves. This represents to them a buffer against future economic sanctions and the dollar’s associated economic volatility.
“The victory the Fed is claiming over inflation means more inflation.” – Mike Maharrey
This story illuminates the deepening fear around inflation and the Fed’s monetary stance. In its wake, people are investing in gold as a safe haven asset.
Gold’s Performance Amid Market Optimism
Gold has been overlooked in this new optimism taking place on Wall Street. Recent bullish market trends and volatility have pushed many investors to be more short-term focused and forget gold’s long-term value proposition. Maharrey warns us not to make this mistake, as the underlying fundamentals driving gold’s price rise are as strong as ever.
He claims that staccato headlines and superficial analysis cannot lure investors from recognizing gold’s innate role. Today’s unprecedented environment creates a rare confluence of opportunity for investors who understand that gold remains the ultimate reliable store of wealth.
Cash is guaranteed to lose value every year—with at least a 2.4% depreciation based on official Consumer Price Index (CPI) data. Gold continues to be a stronger hedge against inflation. We urge investors to rethink their asset allocations considering these new dynamics.
The Case for Idaho’s Gold Investment
Idaho left more than $200 million on the table in potential revenue gains this year alone. This loss occurred due to prohibitions on holding gold in state treasury assets. We applaud Idaho Governor Brad Little for recently vetoing such a bill. Specifically, this introduced legislation would have allowed Idaho to invest as much as 7.5% of its idle funds in physical gold and silver. Maharrey chastised this decision for its reasoning that supports rejecting gold investments, calling the reasoning “bumbling at best—and thoroughly disingenuous.”
He contends that this kind of hesitance, motivated by worry over storage fees that amount to mere pennies, is a misreading of good financial practices. “Rejecting sound money (gold) over minimal storage fees is, in my words, financially illiterate,” Maharrey contended.
IRA storage fees for gold, for instance, have recently plummeted to an astonishing 0.29%. This decrease underscores just how expensive it is to fall behind on investing in gold. As states like Idaho grapple with financial management strategies, the implications of their decisions could resonate well beyond immediate budget considerations.