The Time For Gold Is Now—During the Period Between a Recession and an Economic Comeback

While we begin to emerge from the common coronavirus (COVID-19) pandemic, it comes as no surprise that the world and nearly every state in the United States are already in the midst of an economic depression, not to mention the heartbreak over a loss. The new government stimulus packages are a necessity for many Americans and may help stimulate the economy to a degree, but there is no magic wand. We do not have full confidence in an immediate comeback or the long-term impacts of this unexpected event. If people hang on to the stimulus money, we could easily find ourselves in a longer-term recession instead of a much-needed economic comeback.

iStock 1210689410In an article by Investopedia entitled, Stimulus Package, contributor Adam Hayes states, “A stimulus package is a coordinated effort to increase government spending and lower taxes and interest rates to stimulate an economy out of a recession or depression.” While this is undoubtedly the intention of the US government, this pandemic has impacted the economy like no other event history. It is also possible that the stimulus package could backfire. Hayes goes on to say, “A potential problem of fiscal stimulus is that to increase public spending, the government has to increase its borrowing, which would lead to a higher debt-to-GDP ratio. Also, people may choose to save the excess disposable income instead of spending it, which could render the stimulus package ineffective.” No one knows for sure how the stimulus package will play out.

Gold Sellers React

During previous recessions, the attempt by investors to acquire physical gold to grow their wealth and protect their assets (much like purchasing stocks and bonds) required some effort. Personal investors should expect competition by gold sellers and real money traders (RMTs) as well as other private investors. In previous post-recession periods, many dealers secured gold bullion and went on to become some of the wealthiest gold sellers in the world, with wealth that expanded in less than 10 years. Prices are rising today as a result of the worldwide interest in gold due to the current economic scenario.

Gold as a Diversification Option

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When financiers implement a broad set of investment options, including a hedge against inflation, their financial portfolios are more secure when a recession hits. Whether or not investors desire physical gold, they have the opportunity to invest in a gold-backed exchange-traded fund (ETF)—a paper form of gold investment. Primarily they invest in the price of gold (owning a share of the trust). This global recession is the time when investors look at diversification, especially when the Fed is going into a national debt to help with our economic recovery—which could place us into an inflationary state. Also, consider that the central banks are continually adding physical gold to their stockpiles. Gold already serves as a worldwide reserve currency in which investors swap some of their stocks and bonds for gold while gold prices are stable.

The Nature of Gold

Gold is the ultimate form of money—a store of value. Unlike stocks and bonds, gold is not generally used as an income-producing asset. Gold investment is not the same as a stock or bond but rather more like paper money to some degree. Gold, like the US dollar, is a medium of exchange that pays no dividends. So, while the US dollar and gold have more similarities than other forms of investments, they are different primarily in that gold supplies have a limit. With the Fed increased its balance sheet from $5 trillion to $9 trillion, consider that this figure is nearly as much as the total value of all gold in the world. As interest rates continue to drop, given the stimulus, the fixed amount of gold is going into the hands of savvy investors at a critical time. The fact is, gold maintains its purchasing power over and over—in a way that has outperformed all fiat currencies for more than 100 decades.

A Time For Gold

Investors, financiers, and banks have learned that in times like these when the value of newly printed paper money is unstable, gold prices rise. We also know that in times like these, investors turn to gold as a hedge against inflation, since gold supplies are less constant. Below are some thoughts about why it may be time for gold:

  • Current supply and demand drives gold prices higher in times of crisis
  • Gold as a hedge against inflation is more sound than paper money (when printed to stimulate the economy)
  • As the demand for gold rises, the value will increase; it’s essential to purchase low before the recovery period ends
  • Gold is an excellent diversification tool for financial portfolios in periods of economic recession
  • Physical gold and gold-backed investments are low-risk transactions
  • Gold cannot be printed and therefore devalued like fiat money

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Consider that the gold price peaked as high as $1,921 per ounce in 2011 as the US economy was ending a recovery period. In fact, the cost of gold has begun to rise in response to the pandemic, with today’s gold price up 6.80% in only the past six months. Oddly enough, a recessionary recovery period is often the best period to buy gold.

The recovery of the worldwide pandemic is inevitable—it’s a matter of when and how Americans and the world can make a comeback. While the world may never come back the same, it will indeed get back to a new normal. Consider that the time for gold is now—during the period between a recession and an economic comeback.

Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

The Collapse of Fiat Currency Is Gold’s Moment to Shine.

A dramatic transformation is unfolding in the financial landscape, as gold reclaims its position as the ultimate safe haven. Amid growing economic uncertainty, the U.S. dollar has lost over 40% of its purchasing power compared to gold in just the past year — a staggering decline that signals deepening erosion of confidence in fiat currencies.

Yet, despite this dramatic devaluation, the story has not made the headlines it deserves. This speaks volumes about the growing disconnect between financial reality and public awareness, as gold sees a remarkable 23% increase since the start of 2025, proving its resilience in an increasingly unstable global economy.

In a recent PBS article, reporter Bernard Condon says that economists fear that the recent drop in the dollar is so dramatic that it reflects something more ominous — a loss of confidence in the U.S.

“The safe-haven properties of the dollar are being eroded,” said Deutsche Bank in a note to clients earlier this month, warning of a “confidence crisis.”

Investors Turn to Gold as Fiat Fears Mount

For global investors, the message is clear: the dollar is no longer the unchallenged cornerstone of financial stability. With persistent inflation, record-breaking debt levels, and growing geopolitical uncertainty, many are opting for the tangible security of gold.

“Since 2023, gold’s gone from $1,800 to $3,400 an ounce,” Forbes Media Chairman and editor-in-chief Steve Forbes told Fox Business. “That’s a sure sign we’re going to have a weak dollar ahead, which means, ultimately, turbulence and higher prices in the marketplace. Just look at the 1970s, and we can see where that leads unless something is done about it now. But I don’t see any sign that the authorities have any idea, constructively, of what to do, sadly.”

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next year — the most pessimistic outlook of major investors in almost two decades.

A CNBC article published on April 21 highlights an even more worrying trend. As the U.S. dollar weakens, other central banks may be forced to devalue their own currencies just to stay competitive. This “race to the bottom” in global fiat currencies could ignite even more inflationary pressure worldwide, making gold all the more appealing for investors who want out of this volatile spiral.

Global Currency Devaluation May Be Just Beginning

The exodus from U.S. assets also shines a light on the broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens. The drop in the U.S. dollar has prompted other currencies to appreciate against it, especially safe havens such as the Swiss franc, Japanese yen, and the euro.

This is no mere market correction or cyclical fluctuation. As Bloomberg Intelligence’s Mike McGlone and many others have noted, we’re in the middle of just the fourth-ever capital rotation event — a strategic shift of investments across asset classes, sectors or regions in response to market conditions, economic cycles, and performance trends. “Gold is now the most expensive ever versus the U.S. long bond market,” he observed, pointing to deep structural issues in the American economy and financial system.

Meanwhile, central banks around the world are bolstering their gold reserves at record rates, a move that signals long-term distrust in the global fiat system.

“Global trust and reliance on the dollar was built up over a half century or more,” University of California, Berkeley, economist Barry Eichengreen told PBS. “But it can be lost in the blink of an eye.”

As the dollar falters, gold is reclaiming its historic role as the foundation of monetary confidence. For investors seeking real, enduring value, the message has never been clearer: the future is golden.
“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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Gold Breaks $3,300: Experts Say $4,000 Is Now in Sight

Gold soared past the $3,300 mark on April 16, once again shattering an all-time high as investors and retirees continue to seek safety amid growing global uncertainty. The precious metal climbed more than 6% in the last week and is up over 25% year to date, fueled by escalating U.S.–China trade tensions, a faltering dollar, aggressive central bank buying and recession fears.

“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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New Tariffs Crush the Stock Market: Why Gold Is the Safe Haven You Need NOW

The stock market was already beginning to crumble this year under the weight of inflation, economic uncertainty and the threat of global war. But since the latest tariffs went into effect on April 2, the stock market has been dealt yet another devastating blow — while gold continues to stand strong and see record stability.

On April 4, the S&P 500 fell 291 points (5.4%) by the afternoon, while the Dow Jones tumbled 2,150 points (5.3%) and the Nasdaq slid 5.8%. The free-fall carried over from the previous day, when the indexes recorded their biggest one-day drop since 2020, with $2.5 trillion in investor wealth being erased from the S&P 500. The Dow and S&P 500 each sank more than 4%, while the tech-heavy Nasdaq plunged nearly 6%.

Despite these incredibly uncertain times, gold is up nearly 3% over the last month, while the S&P 500 is down over 13%. This stark contrast highlights gold’s resilience as a safe-haven asset when traditional markets falter. As investors scramble for stability, the surge in gold prices continues to underscore its long-standing reputation as a reliable store of value in times of crisis.

The Impact of Trump’s Tariffs on the World

The latest tariff announcements include steep levies on key imports, particularly from China, the European Union and Mexico. In response to Trump imposing 34% tariffs on Chinese goods — which were already subject to a 20% levy — China hit back on April 4 with a 34% tariff on all U.S. products starting on April 10.

This comes after Canadian Prime Minister Mark Carney said that Canada will match Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

“We take these measures reluctantly — and we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

One of the most concerning aspects of these tariffs is their inflationary impact. Higher import costs will translate to rising prices for goods, squeezing American households already burdened by inflationary pressures. Companies facing higher production costs may either pass expenses onto consumers or cut jobs to maintain profit margins — both scenarios spell trouble for economic stability.

Gold’s Surge Amid Market Chaos

Historically, gold has served as a hedge against economic uncertainty. In today’s uncertain and scary times, that has been rang more true. While equities crumble under the weight of trade tensions, gold has surged by more than 12% since the start of the year, while the S&P 500 has plummeted by over 15%.

Gold’s appeal lies in its independence from government policy and currency devaluation. Unlike fiat money, which can be manipulated through monetary policy, gold maintains intrinsic value, making it a trusted store of wealth in times of crisis. With fears of a prolonged trade war and potential stagflation on the horizon, investors are ditching the uncertainty of stocks and moving their hard-earned capital into tangible assets.

Why Investors Are Turning to Gold

With global instability accelerating, more investors are seeking protection — not speculation. High-risk assets like stocks are increasingly vulnerable to sudden shocks, policy changes, and economic downturns.

While stock traders brace for more volatility, Deutsche Bank, one of the world’s leading financial services providers, is looking beyond the panic — and betting big on gold. The bank just raised its average price forecasts for gold to $3,139 for 2025 and $3,700 for 2026, signaling strong long-term confidence in the precious metal.

“We conclude that the bull case for gold remains strong despite this week’s correction and further upgrade our year-end forecast to $3,350/oz.,” the bank said in a statement on April 7.

This shift reflects a growing recognition: gold isn’t just a hedge, it’s a foundation for financial security. In times like these, where headlines shift hourly and markets react in real time, gold remains a steady and trusted asset.

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