Gold rush intensifies as economic fears drive record demand

[UNITED STATES] Marc Faber, the seasoned investor long known by his self-styled moniker "Dr. Doom" (distinct from the Marvel villain), has spent decades accumulating gold—and urging others to do the same.

A perennial gold advocate, Faber frequently appears in interviews championing the metal as a shield against financial catastrophe. Lately, his list of looming threats has grown longer: a ballooning debt crisis, crashing asset values, and persistent inflation are all high on his radar.

His message echoes a growing sentiment among veteran investors who view gold as a timeless safeguard against systemic risk. Central banks have taken note as well, with nations like China and Poland leading a surge in gold reserves. This institutional buying spree has only reinforced gold's status as a haven in an increasingly uncertain world.

"A debt crisis is, in my opinion, inevitable," Faber recently said. Gold makes up a hefty 25% of his portfolio—a reflection of his deep-seated concern. His clients, too, are heavily weighted in gold. But it’s not just the wealthy seeking refuge. As prices climb, the metal’s allure is catching on with more everyday investors.

Much of the recent frenzy can be attributed to an uneasy economic undercurrent in 2025. Consumer confidence is sagging, inflation expectations are climbing, and mixed messages from the Federal Reserve have left markets on edge. Policymakers have hinted at potential rate cuts, but inflation remains sticky—keeping both investors and the Fed guessing.

Retail demand for gold is gaining traction in the fog of this uncertainty. While some of the fears voiced by Faber's clientele—ranging from hyperinflation to global conflict—may seem far-fetched, analysts say the heightened interest in gold isn’t likely to fade soon. Gold enthusiasm isn’t limited to U.S. borders. Global demand for gold bars jumped 13% year-over-year in the first quarter of 2025, reaching 257 metric tons, according to the World Gold Council.

Joe Cavatoni, market strategist at the World Gold Council, pointed to several underlying concerns: the weakening U.S. dollar, domestic economic shakiness, and growing anxieties over government debt and deficits.

The dollar’s recent slide has been a key driver of gold’s rise. As the greenback loses value against other major currencies, international buyers have piled into gold, viewing it as a relatively cheaper and more stable asset. Analysts warn this trend could persist if the Fed maintains a looser policy stance than its global peers. Online interest has surged in parallel. Google searches for "gold bars" spiked during major news events—including the imposition of tariffs on Canada and Mexico, and Moody’s decision to downgrade U.S. debt.

Gold dealers are also riding the wave. Genesis Gold Group, which caters to a clientele it describes as "homesteaders" and "preppers," has reported a sharp increase in interest. The demand was so robust, the firm introduced a new "prepper bar"—a gold bar designed to be broken into smaller pieces for easy use in a crisis. Jonathan Rose, Genesis's CEO, said prepper bar sales jumped following the presidential election and surged another 20% in the first quarter of 2025, coinciding with former President Donald Trump's early moves on trade policy.

A growing number of clients now insist on holding their gold in physical form, Rose noted. About 70% of Genesis customers currently take delivery of their gold—up from just 20% in previous years. This preference reflects a broader distrust in financial institutions. Reports of bank failures and cybersecurity breaches have stoked fears about storing wealth digitally or on paper. “People want something tangible they can control,” said Rose, who added that interest in private vault storage is also on the rise.

While many of Genesis’s customers live off the grid and embrace self-sufficiency, not all are survivalists. More mainstream investors are seeking protection from dollar depreciation, inflation, and volatile equities.

“They’ve got food and water stored—but that doesn’t mean they’re wearing tinfoil hats,” Rose said. “They just want a hedge.” Over on Reddit’s r/preppers forum, which has seen membership soar by 354% since 2020, users frequently discuss gold as part of their survival planning.

“If a currency collapses, cash is king—until it isn’t,” one user wrote. “That’s when gold and silver take over.”

Gold's Golden Run

So far, 2025 has been a stellar year for gold investors. Bullion prices have surged 25%, outperforming the S&P 500, which is down roughly 1% year-to-date. Geopolitical instability has added fuel to the rally. Ongoing tensions in the Middle East and escalating trade disputes have reinforced gold's historical role as a crisis asset. Investors, wary of sudden shocks, continue to pour into the metal.

Still, some analysts argue that the panic may be overblown.

While the threat of a U.S. recession remains elevated, major Wall Street firms are dialing back their forecasts. Goldman Sachs recently trimmed its recession probability from 45% to 35%, while Barclays has dropped its projection for a mild downturn altogether. Concerns over U.S. fiscal policy have resurfaced after Trump’s tax bill reignited debt fears. But analysts like Michael Brown of Pepperstone believe these worries may subside if the legislation is revised to placate bond markets.

“There’s definitely a bit of overreaction in the air,” said Michael Boutros, senior technical strategist at StoneX. “There’s a lot of fearmongering going on.”

Even so, Boutros expects gold to maintain its momentum as long as economic uncertainty lingers. “Even if trade deals get hammered out, people are still going to be nervous,” he said. “The more turbulence we see, the more gold will benefit.” The World Gold Council's Cavatoni agrees: “We see strong support for prices and a clear upward trajectory heading into the rest of 2025.”