Hi Friend
I want to talk to you about something that doesn't get nearly enough attention...
While everyone's been watching the turbulence in stock markets and crypto, one asset has been quietly doing something extraordinary.
Gold just hit ~$4,746 per ounce (around £3,528 in the UK). That's not a typo. And it's not a freak spike.
Gold prices have reached record levels — climbing over 25% since early 2025 — driven by persistent inflation and economic uncertainty. And here's the thing: the forces pushing it higher aren't going away anytime soon.
Let me break down exactly what's happening — and why it matters to you.
The world is scared. And scared money buys gold.
Since the Iran war began, gold has become the first refuge for frightened investors worldwide. And it's not hard to see why — unlike currencies and bonds, no country can "print" more gold.
For thousands of years, it has preserved its value through wars, crises, and collapses. Analysts estimate the Iran war alone accounts for at least 15–20% of gold's rise since February, and as long as the conflict persists, this remains the single most powerful price driver.
The world's biggest banks are loading up on it.
This is the part most people miss. It's not just everyday investors buying gold right now — it's governments and central banks.
Even with three consecutive years of more than 1,000 tonnes of central bank gold purchases, the structural trend of higher central bank buying has further to run in 2026, with around 755 tonnes of central bank purchases expected this year.
That's nearly double the pre-2022 average. When the world's central banks are stacking gold, that tells you something.
Your money is quietly losing its value. Gold doesn't.
Inflation is still biting. Gold is historically considered the best hedge against inflation. When goods and services prices rise, and paper currencies lose purchasing power, gold maintains its real value.
The higher inflation climbs, the stronger the demand for gold.
Meanwhile, the US dollar has been under pressure, and the relationship between gold and the US dollar is one of the most critical dynamics in financial markets. Traditionally, when the dollar falls, gold rises.
Where does it go from here?
The serious money is very bullish. J.P. Morgan's analysts have a strong conviction that gold demand will have enough firepower to continue pushing prices toward $5,000/oz in 2026.
They've even laid out a scenario where if just 0.5% of foreign US asset holdings were diversified into gold, it would be enough new demand to drive prices to $6,000/oz.
State Street — one of the world's largest asset managers — frames it simply:
"Gold is still in the middle innings of a bull cycle".
One other thing definitely worth knowing...
If you ever go to buy physical gold — bars or coins — you'll notice the price is a little higher than the number you see quoted online. That's normal. The spot price on the charts doesn't include manufacturing, storage, or insurance. It's just the raw market price.
Physical gold always carries a small premium on top of that.
So if you could buy it without that "premium", that might help. And I want to share something with you that could be the solution (more about that soon).
Talk soon,
John
