Key Takeaways
- Gold prices have surged nearly 70% in 2025, its best year since 1979, due to Donald Trump’s erratic policies and global economic uncertainty.
- The value of gold is expected to continue to rise, with some analysts predicting it will hit $5,000 an ounce.
- Canada is a major gold-exporting country, with gold becoming its second-largest export after oil.
- The Canadian government is considering a ban on social media for kids under the age of 14 as part of its online harms bill.
- A recent trade deal with China is expected to make electric vehicles more affordable, with prices potentially dropping to $35,000.
Introduction to Gold’s Surge
Gold has long been a safe-haven asset, and its value tends to increase during times of economic uncertainty and turmoil. The current surge in gold prices is no exception, with the precious metal reaching record highs in recent months. The value of gold has increased by nearly 70% in 2025, making it the best year for gold since 1979. This surge is largely attributed to Donald Trump’s erratic policies, which have created uncertainty and instability in the global economy.
The Appeal of Gold
Gold is a unique asset that is not tied to the performance of any particular company or government. Its value is determined by supply and demand, and it does not provide a yield, making it less affected by interest rate changes. The scarcity of gold, with hundreds of billions of dollars’ worth being traded every day, also contributes to its stability. Additionally, gold is easy to transport and sell, making it a popular choice for investors looking to diversify their portfolios. The predictability of gold’s value is also a major draw, especially during times of great upheaval, as it provides a sense of security and stability.
Trump’s Impact on Gold
Donald Trump’s policies have been a major contributor to the surge in gold prices. His actions, such as running up colossal government debt, transforming international trade, and threatening the independence of the U.S. Federal Reserve, have created uncertainty and instability in the global economy. This has led to a decline in the value of the U.S. dollar, prompting investors to seek alternative assets like gold. The "debasement trade" is a new trend on Wall Street, where investors are buying gold and other alternative assets as a hedge against the declining value of the U.S. dollar.
Central Banks and Gold
Central banks are also buying gold in large quantities, especially in countries that are exposed to geopolitical pressures and are trying to reduce their dependence on the U.S. dollar. China, Poland, Kazakhstan, and Azerbaijan are among the top purchasers of gold, with China adding to its gold holdings for the past 14 consecutive months. Russia has also increased its gold reserves, adding 40 million ounces between 2014 and 2020. The fact that gold is sanctions-proof is also a major advantage, making it an attractive asset for countries that are subject to economic sanctions.
Canada’s Gold Industry
Canada is a major gold-exporting country, and the recent surge in gold prices has been a boon for the industry. Canada is the world’s fourth-largest producer of gold, and as of September, gold has become its second-largest export after oil. Two-thirds of Canada’s gold exports go to Britain, where London serves as the biggest global market for precious metal trade. Many analysts are predicting that gold will continue to rise in value, with some expecting it to hit $5,000 an ounce.
Other News
In other news, the Canadian government is considering a ban on social media for kids under the age of 14 as part of its online harms bill. This move is aimed at protecting children from the potential harms of social media, including cyberbullying and online harassment. Additionally, a recent trade deal with China is expected to make electric vehicles more affordable, with prices potentially dropping to $35,000. This could be a major boost for the environment, as electric vehicles produce zero emissions and are a more sustainable alternative to traditional gasoline-powered vehicles.
