To The Moon

Gold prices have surged in 2025, recently reaching $3,398 per ounce amid escalating geopolitical tensions, including the ongoing Russia-Ukraine conflict and renewed U.S.-China trade frictions. Analysts, such as those from Citi, have adjusted their short-term forecasts, anticipating gold could reach $3,500 within the next three months, driven by increased safe-haven demand and substantial buying from Chinese insurers . Other institutions like UBS and Goldman Sachs also project gold prices to climb to $3,500 or higher by year-end, citing persistent inflation concerns and central bank purchases.

When considering hedging against U.S. stock market risks, investors often weigh the merits of physical gold versus gold futures. Physical gold offers tangible ownership and is free from counterparty risk, making it a traditional safe-haven asset. However, it requires secure storage and is less liquid compared to financial instruments. On the other hand, gold futures provide greater liquidity and the ability to leverage positions, which can amplify gains but also increase potential losses. They are more suitable for experienced investors who can actively manage their positions.

In the current economic climate, gold has outperformed U.S. equities, with a 40% increase over the past year, while major stock indices have shown modest gains . Given the ongoing market volatility and uncertainties, many investors are turning to gold as a more stable investment option. However, the choice between investing in gold or U.S. stocks ultimately depends on individual risk tolerance, investment goals, and market outlook. Diversifying one’s portfolio to include both assets could be a prudent strategy to balance potential risks and returns.