AGE Gold Commentary

AGE Gold Commentary is our regular report analyzing trends in precious metals and rare coins. We monitor domestic and international markets and extrapolate from our 30 years in metals to place current events into a hard asset perspective. View archives.

4/14/2025: Gold soars on bond blowout, what’s next?

Greetings!

Following the “Liberation Day” announcements of reciprocal tariffs on all US trading partners, at substantially higher levels than almost anyone imagined, a week of carnage ensued in the US stock markets. This result did not seem to faze the White House.

Then the damage spilled over into the US bond market, crashing bond values and inflating yields. Suddenly, the world’s most stable and liquid asset, which forms the bedrock of the global financial system, seemed not so unstable. President Trump was forced to rescind the reciprocal tariffs for 90 days.

Amid the chaos, we witnessed a seismic reversal of the traditional safe-haven hierarchy. Historically, US government bonds are first, gold is second, when it comes to security. But in a matter of days after the tariff announcement, bonds backed by the full faith and credit of the United States were dumped while gold demand soared, propelling prices to new all-time highs above $3,200 an ounce.

If confidence in the creditworthiness of the US government is shaken, and gold steps forward as the world’s first choice in times of economic turmoil, demand for gold would utterly overrun supplies. The capitalization of the global gold market is just a fraction of the US bond market. As famed international speculator Doug Casey has said, “this would be like putting the water that goes through the hoover dam through a garden hose.”

In this AGE Gold Commentary, we’ll detail why this bond market blowout could become a major new global driver in gold’s historic rally, pushing the gold price into the stratosphere.

Sincerely,

Dana Samuelson
AGE President