As gold approaches the $4,000 mark, its rapid ascent might seem surprising to some investors. But for those who understand the deeper forces reshaping the global financial system, this moment has been building for years.
At American Alternative Assets, we don’t view gold’s performance in 2025 as a spike. We see it as a structural realignment driven by a massive loss of faith in fiat currencies, and particularly the U.S. dollar.
The Problem with Fiat Wealth
In a recent interview, veteran portfolio manager David Miller pointed out a hard truth: “Holding your wealth in any fiat currency is a pretty crumby way to preserve your wealth and purchasing power.”
Inflation is only part of the story. Since the COVID-19 crisis, governments have been on a global spending spree, flooding economies with liquidity. Despite the official end of the health emergency in 2023, the printing presses never slowed down.
The result? A record surge in debt, paired with the kind of monetary expansion that undermines the long-term value of paper currency. While gold has appreciated against nearly all major currencies, its most significant gains have come against the U.S. dollar.
Why Gold Still Has Room to Run
According to Miller, gold is not “overpriced” in this environment. It’s simply catching up to the rapid growth in the money supply.
The math backs it up: The U.S. government added $1.9 trillion in deficit spending this year alone, on top of a $37 trillion debt mountain. The most politically convenient path forward? Quietly reduce the value of the dollar over time.
Miller explained it simply: “If you had a printing press, owed $36 trillion, and couldn’t raise taxes or cut spending, you’d probably use that press.”
That slow, silent erosion, what many call currency debasement, is why more investors are turning to hard assets like gold.
Central Banks Are Leading the Flight
While retail investors are beginning to notice what’s happening, central banks are already acting. They’re reducing exposure to U.S. dollars and increasing gold reserves.
This isn’t a short-term shift. Miller described it as a “multi-decade process,” one that ensures strong baseline demand for gold well into the future.
And there’s another dimension: trust.
When the U.S. used the dollar as a tool of foreign policy following Russia’s invasion of Ukraine, it sent a message to the rest of the world. In recent months, that signal has been amplified by trade wars, global tariffs, and rising political instability.
“Tariffs, SWIFT weaponization, and endless monetary easing have created an environment where no rational actor would want to keep their savings in dollars,” said Miller.
What This Means for You
This isn’t just a geopolitical story. It’s a deeply personal one.
Every day that fiat currencies lose value, your purchasing power shrinks. Every new round of stimulus, every additional trillion in debt, brings us closer to a future where savings stored in dollars struggle to keep up with real-world costs.
That’s why smart investors are positioning their portfolios for resilience. Physical gold offers the kind of long-term stability that no digital asset or paper promise can match.
Take Control While You Still Can
At American Alternative Assets, we help our clients escape the trap of dollar-denominated wealth. We offer access to real, tangible gold—the kind of asset that has preserved value for thousands of years, through every financial storm.
You can either wait for the dollar to lose another 5% next year—or you can start protecting your portfolio today.
This article is for educational purposes only. Past performance does not guarantee future results. Precious metals investing involves risk. Consult with qualified financial professionals before making investment decisions.
