Why Buy Gold in 2025? 17 Reasons Gold Still Shines in Uncertain Times

Gold has surged over the past year. If you’re wondering, “Isn’t it too late to buy?” — you’re not alone. But here’s the truth: even at higher prices, gold is still one of the most powerful ways to protect your wealth.

Whether you’re concerned about inflation, global tensions, or just want to diversify outside of the banking system, gold remains a timeless asset — and 2025 may be the most important time in years to own it.

1. Markets Remain Volatile Despite Highs

Global stock markets have hit record levels in 2025, but under the surface, things aren’t as solid. Valuations are stretched, and many analysts expect flat or falling returns over the next decade. Gold often outperforms in these environments.

See: Dow Gold Ratio – How Does Gold Compare to Shares?

2. Geopolitical Risk Is Surging

Wars in Ukraine and the Middle East, rising tensions in Taiwan, and cyber threats from state actors all add uncertainty. Gold has historically performed well in times of conflict because it’s a global store of value with no counterparty risk.

See: How Does War Affect the Gold and Silver Price?

3. Inflation May Not Be Over

While inflation has eased since 2022–2023 highs, history shows it often comes in waves. Gold helps preserve purchasing power in high-inflation environments — unlike cash or term deposits, which lose value after tax and inflation.

Source: Tavi Costa

4. Central Banks Are Trapped

Raise rates too much and the economy crashes. Cut too early and inflation takes off. Gold shines when trust in central banks wavers. In fact, central banks are now buying more gold than ever…

5. Record Central Bank Gold Buying

2022 to 2024 saw the largest central bank gold purchases in history. Countries like China, Russia, and Turkey are shifting reserves away from US dollars. Shouldn’t you do the same?

Since the Ukraine war, average quarterly central bank gold purchases have jumped from 118 to 291 tonnes — likely a response to the growing risk of US dollar reserves being frozen or confiscated. | Source: In Gold We Trust Report

6. Mine Supply Is Flatlining

Global gold mine production has been stagnant for years. With fewer major discoveries and rising extraction costs, supply constraints may drive prices even higher in the future.

7. NZD Gold Price Shows How Gold Protects Against Currency Risk

Even when the USD gold price pauses, local investors in New Zealand can still see strong gains. That’s because the NZD tends to weaken during global uncertainty — and gold responds accordingly.

In 2025 alone, gold in NZ dollars is up 51% year-to-date, far outpacing inflation and outperforming most asset classes. That’s wealth preservation in action.

But gold could have much further to go yet. See: How Do You Value Gold | What Price Could Gold Reach?

8. China’s Gold Hoard Is Likely Much Larger

The People’s Bank of China reports official reserves, but many believe they hold far more via proxies. Their message is clear: gold is strategic. As their share of global power grows, gold demand is likely to follow.

9. Share & Property Markets May Underperform

Real estate has cooled in New Zealand since 2022, and share markets face demographic and debt-driven headwinds. Gold offers an alternative that doesn’t rely on economic growth to perform.

Gold will likely outperform both property and sharemarkets. See: NZ Housing to Gold Ratio 1962 – Dec 2023: Measuring House Prices in Gold‎

10. Gold Is Wealth Insurance

Gold is not a get-rich-quick scheme. It’s financial insurance. If the monetary system stumbles, you’ll be glad you hold a portion of your wealth in a real, tangible asset with no counterparty risk.

Learn more: Why Gold Bullion is Your Financial Insurance

11. Gold Lets You Exit the Banking System

Concerned about bail-ins, banking crises, or financial censorship? Physical gold is one of the only assets that lets you hold your wealth outside of the traditional financial system — quietly and securely.

12. Protect Against Currency Devaluation

All fiat currencies lose value over time. Gold does not. In fact, every government-issued currency in history has eventually collapsed — gold has always retained its value through these cycles.

13. Be Your Own Central Bank

Central banks hold gold for a reason. Why shouldn’t you? Holding physical bullion means you don’t rely on others to back your money — you’re sovereign.

But the Reserve Bank of New Zealand has no gold reserves, so don’t expect any help from them in maintaining NZ Dollar purchasing power. See: Why You Should Become Your Own Central Bank – Even if Your Nation’s Central Bank Has Gold Reserves.

14. Gold Has Been Money for 5,000 Years

Gold has outlasted every empire, every currency, and every economic crisis. It’s universally recognised, easy to store, and can be sold anywhere in the world.

See: No Fiat Currency Lasts Forever – What About the NZ Dollar?.

15. Gold Helps Preserve Family Wealth

Many families have passed on wealth across generations by holding gold. It’s discreet, portable, and immune to policy shifts. In a world of rising taxes and regulation, gold helps you maintain privacy and control.

16. Gold Is Highly Liquid and Portable

Gold is globally recognised and easy to convert into cash or other assets. Whether you’re in Auckland or Zurich, physical gold is instantly tradable and doesn’t rely on a broker or financial platform to unlock its value.

17. Gold Requires Low Ongoing Maintenance

Unlike rental properties or even dividend stocks, physical gold doesn’t require active management, maintenance, or paperwork. It just sits quietly — holding its value — until you need it.

Why Buy Gold in New Zealand?

Here in NZ, buying gold makes even more sense due to:

• A vulnerable housing market
• A small, open economy exposed to global shocks
• A banking system dominated by offshore ownership

Gold acts as a buffer between you and global volatility.

FAQs: Understanding Gold’s Role in a Portfolio

FAQs: Buying and Storing Gold in NZ

Final Thoughts: Gold Is Not Just an Investment — It’s a Form of Freedom

Gold is timeless wealth. It protects against the erosion of purchasing power, the fragility of financial systems, and the uncertainty of global politics.

As part of your portfolio, it doesn’t just preserve value — it gives you peace of mind and freedom.

Ready to Buy Gold in NZ?

• Order Gold or Silver Bullion Now
• Have questions? Contact our team
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Want to Learn More?

Get our free guide: “19 Nuggets of Knowledge: How to Buy Gold in NZ”
Or dive deeper into the structure of the monetary system with our Gold eCourse

Can you think of any other reasons to buy gold? Share them with us and other readers – Leave a comment below!

Editors Note: Initially published on 26 September 2012. Fully updated 4 November 2025.