The allure of gold has grown significantly as concerns about economic stability mount. In the first quarter of 2025, demand for physical gold rose by 13%, according to the World Gold Council. Wealth advisors and RIAs are witnessing a wave of interest in gold, fueled by fears of a declining dollar, rising debt, and potential crises.
Veteran investor Marc Faber, often called "Dr. Doom," exemplifies this trend. For decades, Faber has advocated for gold as a safe haven, and today it comprises 25% of his portfolio. His clients, sharing his apprehensions about debt crises and inflation, also allocate substantial portions of their wealth to gold. This heightened focus on gold extends beyond his client base, with everyday investors increasingly turning to the precious metal.
Economic data reflects a growing pessimism despite steady economic performance. Soft indicators like consumer sentiment and inflation expectations have soured. Concerns about hyperinflation, geopolitical instability, and asset price volatility are driving demand for gold as a hedge against uncertainty. While some fears—such as global conflict—may be exaggerated, they underline a broader anxiety that shows no signs of dissipating.
Global demand for gold bars reached 257 metric tons in Q1 2025, marking a 13% year-over-year increase. Market strategist Joe Cavatoni of the World Gold Council attributes this to multiple factors, including fears over the U.S. dollar’s strength, economic vulnerabilities, and the national debt. Events like new trade tariffs and a U.S. credit downgrade have spurred spikes in search interest for "gold bars," highlighting the connection between macroeconomic shocks and gold demand.
Companies like Genesis Gold Group are capitalizing on this trend. Known for catering to homesteaders and preppers, Genesis has seen a surge in demand for innovative products like its “prepper bar,” a divisible gold bar designed for crisis trading. CEO Jonathan Rose reports that interest in physical gold storage has also risen dramatically, with 70% of clients now opting to hold physical gold, compared to just 20% in previous years. This shift reflects a broader societal move toward tangible assets and self-reliance.
While many Genesis clients prioritize self-sufficiency, the profile of gold investors is broadening. Increasingly, ordinary individuals concerned about inflation and market volatility are turning to gold. Rose notes that these clients often have comprehensive preparedness plans, including food and water supplies, though they are far from the stereotypical "doomsday preppers."
This sentiment is echoed online, where communities like the subreddit r/preppers have seen exponential growth in membership. Users frequently discuss gold as a safeguard against currency collapse. One member summarized the sentiment succinctly: “Cash is always king until it collapses. Then gold and silver step in.”
Gold’s performance in 2025 validates these concerns. The price of bullion has surged by 25%, significantly outperforming the S&P 500, which has seen a slight decline year-to-date. However, analysts caution that some of the fears driving this rally may be overblown. While recession risks remain elevated, firms like Goldman Sachs and Barclays have adjusted their forecasts, signaling reduced likelihood of a severe downturn.
Despite these reassurances, anxieties persist. President Donald Trump’s recent tax bill has heightened worries about the U.S. budget deficit, though adjustments to the legislation could mitigate investor concerns. Michael Brown, a senior research strategist at Pepperstone, suggests that these fiscal issues may lose urgency as policymakers respond to market pressures.
Market experts remain divided on gold’s trajectory. Michael Boutros, a senior technical strategist at StoneX, acknowledges a degree of fearmongering but also emphasizes the staying power of economic uncertainty. As long as investors remain wary of trade policies and their broader implications, gold’s appeal is unlikely to wane. “The rockier things get, the more footing gold finds,” Boutros explains.
Cavatoni agrees, predicting robust price support and continued upward momentum for gold in 2025. The enduring allure of gold underscores its role as a cornerstone of wealth preservation amid uncertainty. For advisors and RIAs, this presents an opportunity to guide clients in leveraging gold’s potential as a strategic asset, balancing risks while addressing the deep-seated concerns driving this unprecedented demand.
