Is Gold a Buy at Over US$3,000?

Why is the gold price rising?

Will Rhind, CEO of GraniteShares, told the Investing News Network (INN) that one of the biggest drivers of gold’s steady climb through US$2,000 to US$3,000 per ounce and beyond over the past two years has been what he calls the “fear premium.”

“In other words, the fear that would really ultimately motivate investors to get out of equities, to get out of other assets and buy gold,” Rhind explained. “Now the ‘fear premium’ is really starting to get baked in and investors are really, for the first time, beginning to worry about the return of their capital as opposed to the return on their capital. And that’s typically the time you see people the most motivated to buy gold.”

Many of the gold market analysts INN has spoken with so far this year agree that what’s behind that fear in 2025 is just how much damage US President Donald Trump’s tariff war could have on the stability of not only the equities markets, but also the bond markets and the overall health of the global economy.

That includes Ole Hansen, head of commodity strategy at Saxo Bank, who told INN he sees that gold is becoming the pinnacle safe haven in this environment.

“After this tariff bazooka from Trump, we’re seeing some significant selloffs in the equities markets and we’re seeing unrest in the bonds market as well with the yields rising even on days when the equities were falling,” Hansen said. “Basically not really creating a great deal of confidence for investors for where to park their money while we go through this period of turbulence.”

Outside of the fear premium, Will Rhind also points to another factor pushing investors out of other assets and into gold: global money supply. Rhind advises investors to consider the M2 Gold Ratio chart, which is the money supply divided by the price of gold for a given period.

“If you look at a chart that tracks the global money supply versus the price of gold, you’ll see that the two have really moved very much in concert with one another,” he said. “The bigger picture to me is this idea that the paper money supply keeps increasing against gold. It’s not necessarily about gold prices rising, it’s about the value of paper currencies keeps falling in relation to gold.”

Should I buy gold now at US$3,000?

Investors are often told to buy low and sell high, but the current situation is tricky. While gold has set many new highs in 2025, many market watchers believe its run has only gotten started.

Christopher Aaron, founder of iGoldAdvisor and Elite Private Placements, told INN that in February the Dow to gold ratio broke a 45 year trend favoring stocks, a significant signal that means we may be at the beginning of an up cycle where gold could “end up being a multiple of the current price.”

Aaron emphasized that a signal of this magnitude has only occurred…