2025 YTD inflows into gold funds: $80 billion
Nearly 2x the full-year total in 2020
YTD gold price increase: +22%
52 all-time highs set over the past year
Strongest gold rally in 12 years
Opinion
Amid rising macro and geopolitical uncertainty, investors are shifting away from risk assets and seeking long-term safety in gold. As a hedge against inflation, currency volatility, and recession risk, gold is increasingly viewed as a structural portfolio stabilizer, not just a temporary refuge.
Core Sell Point
With gold absorbing more capital, the relative attractiveness of traditional risk assets may continue to diminish, especially if market volatility persists.
In 2025, gold-related funds are seeing inflows at a record-breaking pace. According to BofA Global Research, cumulative inflows are expected to reach $80 billion this year, more than double the peak seen in 2020. Gold has once again proven its status as a safe haven, with capital flowing in as market-wide uncertainty continues to rise.
Gold prices have surged roughly 22% year-to-date, making it the top-performing major asset class in 2025. In the past year alone, gold has set 52 new all-time highs, marking its strongest rally in over a decade. This consistent upward trend reflects the asset's enduring appeal during risk-off periods.
The recent surge in gold demand is driven by a combination of geopolitical instability, concerns over currency depreciation, and global growth slowdown fears. Analysts note that this may represent a structural asset rotation rather than a short-term trend, with gold's investment case remaining strong for the foreseeable future.
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