For decades, seasoned investor Marc Faber, often known as “Dr. Doom,” has consistently advocated for buying and holding gold. Known for his cautious outlook on the economy, Faber has long warned of looming financial crises and urged others to safeguard their wealth with gold.
Recently, Faber has highlighted several pressing threats: mounting debt crises, sharply falling asset prices, and rising inflation. “My feeling is that a debt crisis is inevitable,” he stated.
This cautious sentiment is spreading beyond professional investors. Faber revealed that gold comprises about 25% of his own portfolio, with a significant share of his clients’ assets also invested in the precious metal. Now, ordinary investors are increasingly joining this gold-buying trend, driving up demand and prices.
According to Faber, the widespread negative economic outlook in 2025 is fueling this surge. While the broader economy shows signs of stabilization, “soft data” such as declining consumer confidence and worsening inflation expectations continue to weigh on sentiment. Even if the worst-case scenarios do not fully unfold, Faber expects demand from anxious investors to persist.
Gold buyers are emerging both in the U.S. and internationally. The World Gold Council reports that global gold bar demand reached 257 metric tons in the first quarter of 2025—a 13% increase compared to the same period last year.
Joe Cavatoni, market strategist at the World Gold Council, attributes this rise to concerns over the U.S. dollar’s weakness, the fragile state of the U.S. economy, growing government debt, and fiscal deficits. He also points to recent geopolitical tensions, including former President Donald Trump’s aggressive tariff policies and Moody’s downgrade of U.S. debt ratings, as key factors boosting interest in gold bars.
Genesis Gold Group, a prominent gold dealer, confirms a sharp increase in demand. The company has responded by launching a new type of gold bar designed for crisis situations—small enough to be easily divided and traded when markets are volatile.
Jonathan Rose, CEO of Genesis Gold Group, noted that demand for these gold bars surged after the recent presidential election and climbed 20% in the first quarter of 2025, coinciding with the introduction of new tariff policies.
Rose highlighted a significant shift in client preferences: “More clients are now insisting on physical gold delivery.” He estimates that the proportion of clients holding physical gold has jumped from 20% in previous years to about 70% today.
Gold Rally Likely to Continue
Gold’s strong performance in 2025 has been unmistakable. Prices have soared by 25% this year, outperforming the S&P 500, which has declined roughly 1% year-to-date.
Michael Boutros, Senior Technical Strategist at StoneX, cautioned that while the gold market might feel slightly overcrowded, demand should remain robust amid ongoing economic uncertainty.
Even if trade deals are finalized, Boutros expects investors to remain wary as they watch for the economic fallout from tariffs. “The more volatile the situation, the easier it is for gold prices to hold their ground,” he said.
Joe Cavatoni echoed this optimism, stating, “We believe the support levels and upward momentum for gold prices in 2025 are very favorable.”
As economic risks persist, gold continues to attract investors seeking a safe haven for their wealth in uncertain times.
