Financial experts argue that gold and silver are once again obtaining their “monetary value” due to the outsized fiscal deficits around the world.
Gold and silver prices set new highs on Monday, eclipsing $4,445 per ounce, with prices up nearly 70 percent since the start of the year. Gold has long been viewed as a hedge and a safe haven in times of economic and political turmoil.
Silver prices have risen 128 percent since the start of 2025.
Many have sought to balance their portfolios with gold and silver as a hedge for future turbulence.
Matthew McLennan, head of the global value team at First Eagle Investments, said that because of the outsized fiscal deficit in the United States, United Kingdom, Europe, as well as China and Japan, “the monetary value of gold has arguably reemerged.”
“The value of gold as a monetary potential hedge has reemerged,” McLennan continued. “Gold went from being depressed relative to the nominal assets that you would want to use as a potential hedge against it, to more rationally valued. And I think the other precious metal complexes followed it higher with some leverage.”
The financial analyst said that investors have turned their attention to President Donald Trump’s nomination of the next Federal Reserve chairman.
“What we’re quite focused on here is the long term fiscal credibility of the United States, because I think that is the condition precept for having an independent Fed and for having a rational chair,” he remarked.
“So really what’s going to matter going forward is a function of whether job openings, which have inflected higher recently, whether they follow corporate earnings higher,” McLennan said.
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