Why Investors Are Choosing Gold Over Bonds

This episode argues that mounting U.S. fiscal uncertainties have rendered traditional investment portfolio strategies obsolete. Specifically, it highlights the breakdown of the standard 60/40 equity-bond model, citing evidence that bond volatility and massive deficits—such as the $1.78 trillion recorded in fiscal 2025—have fundamentally diminished fixed income's stabilizing role. Amidst this instability, the analysis asserts that gold prices surged past $4,200 per ounce, repositioning the metal as a critical indicator of fiscal stress rather than just a rate-sensitive asset. The discussion points to foreign investor diversification away from Treasuries and substantial central bank gold purchases as factors supporting this shift. Ultimately, it recommends that investors explore emerging portfolio alternatives that incorporate real ...