The Real Gold Play

If there’s one thing more absurd than Donald Trump declaring the US will take over Gaza or that he’s setting his sights on the Panama Canal, it’s the fact that the mainstream media entertains these ideas as if they’re serious policy moves.

Anyone who believes that a president who campaigned on isolationism, cutting government spending, and reducing foreign entanglements is suddenly about to spend billions of dollars and send tens of thousands of troops overseas needs to have a rethink.

Trump loves making noise

He thrives on the reaction, fuels controversy, and plays the game better than anyone else. But if history has taught us anything, it’s that what he says and what he does are often two completely different things.

His recent comments about turning Gaza into the “Riviera of the Middle East” have sparked outrage, but whether people like it or not, he has made the world start thinking about what comes next. 

Gaza, a 25-mile stretch of land no more significant than Detroit, is in ruins. Whatever happens, the world will have to deal with it.

That being said, it’s a safe bet that Gaza isn’t about to become the next Monaco. If you’re planning a luxury getaway, you’ll need to fund it yourself, and unless you want to watch your wealth disappear through inflation, maybe it’s time to start saving in something tangible, like Gold.

Higher tariffs

Trump is again pushing for higher tariffs on China, a 25% duty on Canada and Mexico, and a complete overhaul of US trade policies. According to the Peterson Institute for International Economics, these tariffs alone could cost the average US household an extra $1,200 a year. His response? “It’ll be worth the pain.”Inflation is already doing the damage. 

Today’s pound, dollar or euro buys far less than it did twelve months ago, let alone ten years ago, and history tells us that fiat money only moves in one direction—down. 

Gold has risen by more than 40%

Gold, on the other hand, doesn’t work that way. Over the past 12 months, gold has risen by more than 40% in US dollar terms, and by a similar percentage in pounds. 

In euros, it’s done even better, rising by 47% since this time last year. For comparison, the S&P 500 delivered just over 25% in total returns, while the FTSE 100 barely scraped 6% in 2024. Bitcoin stole the show with a 120% gain but much more volatility than gold.

If stability is what matters, gold has once again proved why it remains the cornerstone of wealth.

Central banks snapping up over 1,000 tonnes of Gold

The World Gold Council recently reported that 2024 saw total gold demand reach 4,974 tonnes, with central banks snapping up over 1,000 tonnes of that. The people who get access to information long before the public are stacking gold at record speeds. 

That alone should be enough to make anyone think as gold smashes through $2,800 an ounce, speculation that $3,000 is around the corner is growing by the day. Meanwhile, the US national debt is now over $36 trillion, inflation isn’t slowing down, and global instability is showing no signs of easing.

We’ve seen this before. We know how it plays out. Trump’s return is shaking the system again. 

He is governing through executive orders, dismantling federal agencies, and setting the stage for further trade wars. 

His plans to introduce a US ‘strategic’ digital reserve and his tariff threats and policy shake-ups have added even more uncertainty.If the past 12 months have shown us anything, it’s that gold thrives in times like these. 

The world is more unstable than it has been in decades, and as history shows, when uncertainty is in control, gold is the one thing that doesn’t just survive—it strengthens.I recently wrote about the difficulties people are now facing when trying to reclaim their physical gold. 

When you consider that alongside everything else happening, it doesn’t take much more reading to realise what’s coming next. Gold is the time to plan ahead. 

I help individuals position themselves in gold—not as a trade, not as a speculation, but as a safeguard for what’s ahead.

Drop me a line at kane@solomon-global.com. Please reference Gold and Silver UK. Because when the dust settles, the only question that will matter is: did you act in time?

This article, ” In the Know with Kane,” is for informational purposes only and does not constitute financial advice. Investing in precious metals involves risks, and past performance does not guarantee future results.

Kane is a guest blogger for Gold and Silver UK. You can find him on X here.