The Case for Gold in 2025: A Bulletproof Hedge Against Economic Manipulation

Gold—the enduring cornerstone of wealth preservation—is more than a shiny relic of ancient civilizations. It is an indomitable asset, impervious to the financial gamesmanship of central banks and global elites. Yet, mainstream investment strategists like Tom Bruce of Tanglewood Total Wealth Management dare to downplay its significance in 2025, hedging their bets with cautious optimism instead of bold truth. This article tears the veil off tepid analysis, dives deep into gold's historic dominance, and lays out why you should consider going beyond the meek 9.5% allocation suggested by institutional talking heads. Gold vs. the Bond Bubble: The Lies You’re Being Sold Bruce argues that higher real yields on U.S. Treasury bonds will challenge gold in the coming year, claiming a resilient economy will offset any significant economic shocks. But let’s not mince words here—this “resilient economy” is nothing more than a mirage propped up by endless money printing, precarious debt ceilings, and fiscal mismanagement. The Historical Context of Bond Failures Bonds, touted as safe investments, have betrayed the public trust before. In the 1970s, real yields climbed sharply due to runaway inflation, devastating bond portfolios while gold skyrocketed by over 1,200% during the same decade. The parallels to today’s inflationary environment are glaring, yet institutional analysts conveniently omit this from their narrative. Why? Because gold is the antidote to the fiat addiction that fuels their financial ecosystem. The Central Bank Gold Grab: A Silent Revolution Bruce briefly touches on the central banks’ insatiable appetite for gold, citing their moves to diversify away from the U.S. dollar. But let’s call this what it truly is: a seismic rejection of the petrodollar system. Central Banks Leading the Charge Consider this: during the Cold War, gold comprised nearly 30% of central bank reserves. Today, it languishes at around 10%. Yet in 2023 alone, central banks purchased over 1,000 metric tons of gold—a level not seen since 1967 when the global monetary system was still anchored to gold through the Bretton Woods Agreement. This isn’t a coincidence. Nations like China and Russia are amassing gold reserves to prepare for a post-dollar world. Debunking the 9.5% Allocation Myth Bruce’s suggestion of a 9.5% portfolio allocation is better than nothing, but it’s a paltry hedge in the face of systemic financial vulnerabilities. History shows us that in times of crisis, a more substantial allocation to gold can mean the difference between survival and financial ruin. Why You Need More During the Great Depression, gold acted as the ultimate lifeline. Investors who held significant gold allocations weathered the storm as the U.S. government devalued the dollar through Executive Order 6102. Similarly, during the 2008 financial crisis, gold surged by nearly 25% while stocks collapsed. A mere 9.5% exposure might cushion minor shocks, but in the event of systemic collapse, it won’t be enough to save your wealth. Gold: The Ultimate Decentralized Asset Unlike stocks, bonds, or even cryptocurrencies, gold exists outside the reach of government and central bank manipulation. Its intrinsic value doesn’t depend on algorithms, quarterly earnings, or the whims of Jerome Powell’s Federal Reserve. In an age of CBDCs (Central Bank Digital Currencies) and increasing surveillance, gold stands as a bastion of privacy and autonomy. The Cryptic Comparison While some champion Bitcoin as “digital gold,” it remains speculative and untested in a global financial crisis. Unlike gold, Bitcoin lacks centuries of proven value preservation, and its price volatility renders it a poor hedge against real-world crises. What Happens If You Ignore Gold? The risks of underestimating gold’s role in a portfolio are immense. Rising real yields may temporarily curb its price gains, but the long-term picture is clear: fiat currencies inevitably lose value. The U.S. dollar has lost over 96% of its purchasing power since the Federal Reserve was established in 1913. In contrast, gold has retained—and grown—its value over millennia. The Real Cost of Ignorance If the U.S. economy stumbles under its $34 trillion debt load, or if geopolitical tensions escalate into full-blown conflict, those clinging to paper assets will be left holding the bag. Gold, on the other hand, will remain unscathed, rising like a phoenix while fiat burns. The Final Word: Double Down on Gold Bruce’s projection of a modest 10% gain in gold prices next year reflects the cautious optimism of a system insider. But for those willing to confront the reality of financial fragility, gold represents not just a hedge but an outright weapon against economic manipulation. Ignore the naysayers urging you to settle for a 9.5% allocation. History, logic, and survival instincts demand a much greater commitment to the only asset that stands the test of time. Recommended Allocation: A minimum of 20% in physical gold, with an eye toward increasing that allocation as systemic risks become more apparent.

The Case for Gold in 2025: A Bulletproof Hedge Against Economic Manipulation

Bill Brocius Dec 30

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