Gold’s record-breaking rally shows no signs of slowing, with two new catalysts also now fueling the fire, predicts the CEO of global financial advisory and asset management giant, deVere Group.
The bullish prediction from Nigel Green is based on the potential revaluation of America’s gold reserves and a major policy shift in China allowing insurers to invest in bullion.
The United States currently values its vast gold holdings at an outdated $42 per ounce. However, leading hedge funds and financial insiders are increasingly speculating that the Treasury could revalue these reserves at market prices—currently around $2,800 per ounce.
If enacted, this move could inject an estimated $800 billion into the Treasury General Account, reducing reliance on bond issuance and strengthening confidence in gold as a monetary asset.
“Re-marking gold to its real market value could be a transformative financial event,” says Nigel Green.
“It would not only reinforce gold’s role as a core store of value but also amplify its already accelerating price surge.”
Meanwhile, a game-changing development in China is setting the stage for even more demand. For the first time, Beijing has approved a pilot program allowing insurers to invest in gold, unlocking billions in potential inflows into the market. With China’s central bank already leading global gold acquisitions, this move will intensify an existing trend of nations shifting away from US dollar assets.
“China’s green light for insurers will supercharge demand,” notes the deVere CEO.
“This comes on top of central bank buying that is already at its highest level in decades.”
He continues: “These two factors alone would be enough to send gold prices soaring. But they’re hitting at a time when macroeconomic conditions already favor a prolonged rally in precious metals.
“Inflationary pressures remain stubbornly high, exacerbated by Trump’s tariff policies, which threaten to drive prices even higher. The imposition of new tariffs on China and other key trading partners is not only stoking fears of a broader trade war but also fueling a run on safe-haven assets like gold.
“At the same time, central banks around the world are accelerating their purchases of gold at a pace unseen in decades. China, in particular, has been steadily increasing its reserves, with the People’s Bank of China expanding its holdings for a third consecutive month in January.”
The war in Ukraine, instability in the Middle East, and growing tensions in the South China Sea are all contributing to an environment of uncertainty, further boosting gold’s safe-haven appeal.
With all these factors converging, gold’s path to new all-time highs appears inevitable. The combination of US gold revaluation speculation, China’s insurer-driven demand, aggressive central bank buying, inflationary pressures, and geopolitical uncertainty is creating a perfect storm for gold bulls.
“The momentum currently appears unstoppable. We expect that this current record rally still has a way to run.”
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $12bn under advisement.
