- April 14, 2025
- Category: Buy Gold, Government
Goldman Sachs is basing their prediction on stronger than expected central bank demand and “heightened recession risks” impacting ETF inflows. The investment bank, whose previous year-end forecast was $3,300, said it expected central bank demand to average 80 tonnes per month, up from its previous assumption of 70 tonnes and well above the pre-2022 baseline of 17 tonnes per month.
This type of projected increase for a defensive financial product will most probably attract added investor attention. But possibly even more important is the fact that the media, as well as Goldman Sachs, seem to be ignoring the elephant in the room. I’m referring to the historic fact that economic wars frequently lead to actual wars. For example, on August 1, 1941, the United States put an oil embargo on Japan and then froze their assets. One hundred and twenty-eight days later, on December 7, 1941, Japan attacked Pearl Harbor, and the United States entered World War II.
Today however, the United States is flexing its economic muscle on many countries at the same time, in the form of reduced foreign investment/alignment, sanctions, and tariffs. Many allies and long-term trade partners are stating that they are feeling blindsided, but the greatest threat has to be China, who seemed pre-disposed to war based on South China Sea security concerns, as well as what they perceive as U.S. unwanted “internal affair” interference regarding Taiwan.
Many stocks in particular and the market in general could suffer from the breakout from such a conflict, adding even more to the demand for gold and other precious metals. General Mike Minihan, USAF, did not hold back when he recently stated, “We Will Fight China in 2025.” Recent market volatility may just be the beginning. There couldn’t be a better time to increase investment portfolio holdings with physical precious metals.
