Forgot about gold? Not too fast. It seems like gold is about to make a huge return in the second half of 2025. Global powers aren’t in the best of terms, and geopolitical tensions are brewing. This means conventional and modern investment vehicles that rely on fiat and crypto aren’t as stable. The natural response? A return to gold, which is known for its security and long-term value. Here’s why gold is still king, especially now that geopolitical tension is beyond the brewing stages:
Returning to the spotlight
Although cryptocurrencies have been all the rage recently, investors still hold their gold holdings close to their chests. In fact, even the crypto ecosystem recognizes gold’s relevance, explained by stablecoins like PAXG, XAUT, DGX, and PMGT. These gold-backed stablecoins are accepted by retailers, businesses, and even gaming platforms. The top online casinos in the UK focus on Bitcoin, Ethereum, Litecoin, and Tether. Some accept Tether Gold (XAUT), which is backed by gold. Such cryptos allow punters to enjoy slots, roulette, blackjack, baccarat, poker, live shows, craps, and other games.
Some casinos even feature exclusive bonuses for crypto and stablecoin deposits. However, gold hasn’t been in the headlines until recently. Fueled by tensions between major world powers, the global economy is being redefined, and investors are shifting their capital back to gold. The precious metal has offered reassurance during tough times, and astute investors naturally fall back on gold when times get rough. Gold is slowly returning to the mainstream news, with prices rising above $3,400 per ounce.
Support from central banks
Central banks are among the top institutions driving the current gold rally. According to a recent World Gold Council report, nearly all central banks have plans to maintain or increase their gold reserves in 2025. This widespread support reinforces the precious metal’s status as a store of value. It also signals fund managers and private investors that gold should remain part of their holdings and strategic assets. Gold ETFs are among the key vehicles in this trend, thanks to funds like SPDR Gold Shares, VanEck Merk Gold Trust, and iShares Gold Trust.
Such funds provide low-cost access to the gold market and give modern investors an alternative to novel investment vehicles like Bitcoin and Ethereum Spot ETFs. With central banks leading the charge, retail investors feel more confident about the trend. Together, they are solidifying gold’s position as the leading refuge during uncertain times. Central banks have made gold holdings more accessible to the average investor. Thanks to gold ETFs, it’s no longer paramount to hold physical bars and coins. ETFs make gold more flexible and liquid, fitting it into portfolios that don’t require storage and security.
Surviving the dollar decline
Inflation remains one of the top impediments that developed economies face. Rate hikes and tightening policies have done little to lower price levels in key markets like the US and the UK. Economic strains always hurt traditional fiat-based investments and savings strategies. Over the past few years, the dollar has become weaker, pushing investors into other vehicles like gold, cryptocurrencies, and NFTs. However, despite the overall growth curve of leading cryptos like Bitcoin, volatility and uncertainty remain major concerns.
On the other hand, gold has remained stable and attractive to investors. Gold has a proven track record of outpacing inflation better than traditional asset classes. Gold ETFs also benefit from the stability. The option’s interest rates always plateau amid recession concerns and continue to provide a safe, strong, scalable investment vehicle. GLD, IAU, and other major gold ETFs have already hit record levels in 2024 and continue to attract investors looking to hedge inflation and other risks.
What’s next for gold holdings
Gold remains the undisputed king in 2025 in the face of inflation, global conflict, and evolving monetary policies. Whether through ETFs or traditional holdings, gold offers reliability when other markets fail. The uncertainties that mark 2025 only make gold more attractive, and even the most reliable stablecoins are pegged to gold reserves. Cryptos like Bitcoin have been touted to withstand inflation and uncertainties, but gold has a proven record and will maintain its position moving forward.
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