June 2025 – Week 3 Edition
Central Banks Continue to Buy Gold, Creating a New Gold Standard
Last year, gold surpassed the euro to become the second-largest holding in global central banks after the U.S. dollar. Central banks provided 21% of all gold demand in 2024, buying over 1,000 metric tons for the third year in a row and central banks are continuing that buying pace this year. Now, the value of that stored gold is worth more than all other global currencies (except the dollar and euro) combined. According to a new report by the European Central Bank, here is the breakdown of all central bank holdings:
At the end of 2024, global central bank gold holdings had climbed to around 36,000 metric tons, worth nearly $4 trillion at $3,400 per ounce. With central banks adding 1,000 more tons per year, worth over $100 billion, they are absorbing 20% of all new supply, creating a new gold standard.
In a World Gold Council (WGC) survey released by Forbes (June 17, 2025), 28 of the 58 central banks in emerging and developing nations (the poorer nations) said they intended to buy gold over the next year. Fewer banks, three of 14, in the rich or advanced economies, which already hold large amounts of gold, said they had intentions of adding more gold in the next year.
The majority of respondents (72%) to the WGC survey believe the proportion of central bank gold reserves in central banks will be “moderately higher” five years from now, up from 66% in 2024, 59% in 2023 and 46% in 2022. Another 4% believe gold holdings will be “significantly” higher.
Central banks favor gold because it clearly beats all paper currency options. Why try to guess which paper will beat the others – the euro, the pound, the dollar or the yen – when gold beats them all over time? This is the same reason why private investors are also pouring into gold.
Gold is up almost 30% this year. It is also up over 55% since the start of 2024 and it has doubled since October of 2022. This fact is not lost on central bankers or private investors. During past economic and geopolitical crises, gold has also soared, like in 2008 and 2011. Longer term, nations and their people have kept precious metals as a store of value to protect and grow their wealth, now there is a clear case for financial and global crises to deliver $4,000 gold, or even higher.
That’s good for investors but it is also good for rare coin collectors because as more people opt to buy gold, over time, they typically invest in rare coins as well, which boosts the market value. With our select rare coin programs, our professional representatives know which rare coins have the highest return potential for their clients’ needs. Give them a call to find out more about how you can own gold and rare coins.
As Steve Forbes said when we met in late October 2023, to discuss and collaborate on our predictions for movements in the price of gold over the coming years, the long-term weakening of the dollar often foretells gold trending higher.
We Secured A Few More Type 1 American Gold Eagle $25 Singles and Sets
This past week, I wrote about what are sometimes known as the Roman Numeral coins, which are Type 1 American Gold Eagle coins from 1986 through 1991. We received an amazing response from many of our clients who wanted to build a collector set with these coins, so I spoke with a few of my colleagues in the industry to see if they had any of these coins in their inventory. I can’t say I bought every coin but I did boost our inventory with only three complete sets and a paucity of individual coins in that date range for those who may need them to complete or begin building their collection.
Remember, these are the first legal tender, monetized gold coins produced by the U.S. Mint after President Franklin D. Roosevelt issued Executive Order 6102, which required all citizens to turn in their gold coins, bullion and gold certificates, with some collectible exceptions, in excess of $100 to the federal government.
In exchange, the government paid citizens $20.67 for each ounce of the gold they turned in. Less than a year later, Roosevelt raised the price to $35 per ounce. For over 50 years, the country didn't release a single piece of regular-issue, legal-tender gold.
Then, President Ronald Reagan signed the Gold Bullion Act of 1985 into law. A year later, in 1986, the American Gold Eagle was introduced and quickly became the most popular series of coins in the world.
The Eagles were minted in four different denominations, the $5, $10, $50 and the first-ever $25 piece of money in U.S. history. The front, or obverse, of the coin features the legendary Augustus Saint-Gaudens’ design that was first featured on the iconic $20 Double Eagle. The reverse of the coin featured the award-winning family unity design created by Miley Busiek.
For the first six years, from 1986 to 1991, these coins featured the date written in Roman Numerals. Due to the massive appeal from both collectors and investors, these Type I American Gold Eagle coins have become highly sought after. Because of their low mintage numbers at the time and the rush to buy them and these $25 denomination coins have become quite difficult to acquire. As a result of their popularity and limited supply, these coins have become some of the strongest-performing gold coins on the market.
If you thought you missed out on beginning a collection with these coins, you are in luck. Give our professional account representatives a call and they can help you build or complete an incredible collection of these popular coins.
Silver keeps soaring, although gold has taken a short rest after its Friday rise. With Israel’s attack on Iran’s nuclear development facilities and air bases, gold soared to a new high near $3,450 this past Friday but then gold retreated some on Monday and Tuesday as hostilities “normalized” seeking a ceasefire. However, tensions could explode again at any moment, as President Trump warned citizens on Tuesday to “get out of Tehran.” Meanwhile, silver continues to soar above $36 per ounce, resembling its rapid rise in 2011.
Since 2020, there have been five major incidents of new violence in the Middle East. Each time, gold rose on the news and it has kept rising since Hamas invaded Israel on October 7, 2023. Gold closed at $1,816 on Thursday, October 5, 2023, before the early Saturday morning Hamas invasion. It was around that time, when I began reviewing trends and collaborating with other industry leaders, that I predicted gold would rise to $2,400 per ounce by the end of 2025. Some people thought I was being overly optimistic. Obviously, they were wrong. By October 20, gold rose and it has been rising steadily ever since. Now it sits at around $3,385 per ounce. Looking at the chart below, you can see how similar events around Israel have impacted gold:
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