Stock Market Insights: Gold at record highs - why investors are looking beyond the dollar
- Joe Shearer, CPFA
- Oct 16
- 3 min read
Joe Shearrer, CPFA® is Vice President and Wealth Advisor at Fervent Wealth Management.
When the world feels uncertain — inflation high, government debt ballooning, central banks under pressure — investors tend to look beyond the dollar for a safety net. Gold, the age-old hedge, often leads that retreat. But to understand why, you must see them not as speculative gambles, but as symptoms of a deeper impulse: the urge to preserve value when faith in paper money wavers.
Gold’s reputation rests on centuries of use, scarcity and universal acceptability. Unlike bonds or stocks, it pays no interest. Its appeal is psychological and structural. In times of inflation or currency weakness, gold acts as a store of value. Central banks know this; many have been accumulating bullion to diversify reserves and hedge exposure to the U.S. dollar. Around the world, gold continues to serve as a “crisis insurance” asset.
Real interest rates (interest rates after accounting for inflation) that remain low or negative reduce the opportunity cost of holding non-yielding assets. A weakening U.S. dollar enhances the appeal of dollar alternatives. Global instability, from geopolitical strife to fiscal stress, also strengthens the case for independent value stores.
Recent performance underscores those dynamics. Gold surged past the $4,000 an ounce level for the first time on Wednesday, October 8, 2025. It’s building on a record-breaking rally as broader geopolitical and economic uncertainty, as well as expectations of U.S. interest rate cuts sent investors flocking to the safe-haven asset. According to Reuters, gold is up 54% year-to-date, after gaining 27% in 2024. It is one of the best-performing assets of 2025.
Gold-backed ETFs and similar products account for a significant part of the gold market, with institutional and individual investors using them to implement many of their investment strategies. According to World Gold Council, gold ETFs have seen a total of $64 billion in net inflows year-to-date as of late September 2025, with a significant portion of this coming from a record $17.3 billion in September alone. This increase has been driven by investor demand for a safe-haven asset amidst geopolitical and economic uncertainty. This influx marks a dramatic reversal from recent years, where gold ETFs experienced overall outflows, and reflects gold's price surpassing record highs.
That said, precious metals are not a cure-all. Gold is heavy, not yield-producing and can stall in strong equity markets. So where should investors stand? For most, gold can serve as a way to help preserve their portfolio during periods of market stress or uncertainty.
Gold reminds us of a core lesson: wealth preservation remains timeless, even as the instruments shift. When people lose confidence in paper money, they tend to turn to assets they believe are safer. The trick is not abandoning the dollar entirely, but preserving optionality. A balance between stability and innovation may prove the wisest path forward.
Have a blessed week!
Joe Shearrer
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.
Opinions voiced above are for general information only and not intended as specific advice or recommendations for any person. All performance cited is historical and is no guarantee of future results. All indices are unmanaged and may not be invested directly. Precious metal investing is subject to substantial fluctuation and potential for loss.
The economic forecast outlined in this material may not develop as predicted & there can be no guarantee that strategies promoted will be successful.
Fervent Wealth Management is a financial management and services entity in Springfield, Missouri.
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