The year 2025 will go down in financial market history as the year of a spectacular rise in the price of gold. By breaking through the symbolic barrier of $3,000 per ounce in March, then reaching historic highs of around $4,380 in September, gold once again confirmed its status as an essential safe haven asset.
This performance raises a fundamental question for investors: how should this rise be interpreted, and what role should gold play in a modern wealth management strategy?
A performance that defies expectations
After recording an exceptional increase of 34% in 2024, gold continues its upward trajectory with a rise of more than 41.33%, from €2,544.24 per ounce on the 1st of January 2025 to €3,595.99 to date (25th of November 2025) according to the trend chart.
This development is part of a particularly long-term trend: in 20 years, the price of gold has increased fivefold, representing a rise of 400%, while over 25 years, the increase has reached 1036%.
This steady appreciation demonstrates the stability of gold, unlike the volatility seen in other asset classes. Unlike stock market indices, which have undergone significant corrections during recent crises, gold has demonstrated its ability to preserve portfolio value, particularly during the turbulent periods of recent years, when gold gained more than 125% just between 2020 and 2025.
The key factors for a lasting increase
Several fundamental factors explain this remarkable rise in the price of gold. First and foremost, central bank monetary policy plays a decisive role. The end of the cycle of interest rate hikes by the US Federal Reserve and the European Central Bank has automatically boosted the appeal of the precious metal.
When interest rates become low or negative, gold becomes a relevant investment, as it provides effective protection against monetary depreciation.
Institutional demand is another major factor behind this increase. Central banks in emerging countries such as China have significantly increased their gold purchases since 2022, accumulating very large reserves.
Geopolitical and economic instability is the third major factor. Persistent tensions in the Middle East and Ukraine, in addition to political uncertainty in Europe and the United States, are contributing significantly to the rise in global demand for safe-haven assets. In this context, investors are naturally turning to gold to secure part of their wealth.
Gold in a balanced wealth management strategy
For high net worth investors and UHNWIs, gold occupies a strategic place in a diversified asset allocation. This consists of holding a portion of gold defined according to each investor’s risk profile and objectives.
Physical gold, in the form of bullion or investment coins, offers the advantage of holding a tangible asset that is internationally recognised and does not depend on any contract or third party. This characteristic makes it a capital preservation instrument that is well suited to periods of uncertainty.
For those who prioritize liquidity and simplicity, gold-linked ETFs allow investors to invest without having to manage physical storage, while still benefiting from the same exposure to the price of gold.
For wealthy clients seeking to optimise their asset allocation, gold represents much more than just an investment: it provides insurance against uncertainty and is considered one of the most stable assets in an increasingly complex financial environment. Given these challenges, it is essential to seek expert advice in order to define the investment strategy best suited to your wealth objectives and investment horizon.
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Past performance is no guarantee of future results. This article is provided for informational purposes only and does not constitute investment advice. It is recommended that you consult a professional wealth manager before making any investment decisions.
