Gold prices have surged to all-time highs this year as investors flock to the safe-haven asset amid rising concerns over the 1) U.S. government’s ballooning debt and 2) soft demand for Treasury bonds.

This renewed interest in gold comes as the dollar hovers near recent lows, making gold more attractive globally.

With economic and political uncertainty on the rise, gold is a smart choice, especially if your investments are heavy on stocks — it brings real diversification.

Owning a bunch of different stocks? Doesn’t cut it because they all tend to tank together in a crisis. Gold, on the other hand, brings real diversification.

To wit, Gold isn’t tied to the ups and downs of the stock market. While stocks and gold each have their own drivers, gold often goes its own way when markets get rocky.

That said, below we’ll review Jim Rickards’ take on why everyone should consider gold as part of their investment mix…

The 10% Solution

The yellow metal isn't just for doomsday preppers: Gold is a solid backup when things like natural disasters, infrastructure failures or social unrest hit.

“A good rule of thumb,” says Paradigm’s macro expert Jim Rickards, “put 10% of your investable assets into gold (don’t count your house or business in this calculation).

“This piece of the pie is big enough to make a difference if gold takes off, but small enough that you won’t feel much pain if it drops. Ten percent is that sweet spot between growth and safety.”

Plus, when inflation eats away at the dollar’s value, gold’s price usually rises because gold is priced in dollars.

“That means gold can help offset losses in your other investments,” Jim says, “when inflation creeps up.

“With gold in your corner, you’re protected around the clock; no scrambling to react when prices start climbing.”

Jim adds: “Global conflicts and political chaos can wreak havoc on markets — think supply chain breakdowns, sanctions, bank runs or sudden inflation shocks.

“Stocks, bonds and real estate can all take a hit, often without warning. Gold is different: It’s not tied to any country or company, so it’s less likely to get caught up in the mess.

“You can hold onto your gold and ride out the storm,” says Jim. “Gold is like an anchor for your investments…

• “It’s physical, so it can’t be frozen by governments
• It doesn’t move in lockstep with other assets
• And it’s one of the best ways to guard against inflation.

“Gold shouldn’t be your whole portfolio,” Jim concludes, “but it absolutely deserves a place in it.”

Market Rundown for Friday, May 30, 2025

S&P 500 futures are down 0.50% to 5,890. 

Oil is down 1.10% to $60.25 for a barrel of WTI. 

Gold’s down 0.40% to $3,303.20 per ounce. 

And Bitcoin is down 0.35% to $105,475.