Gregor Gregerson, the founder of precious metals dealer and storage provider Silver Bullion, said he has seen customers numbers more than double in the last year.
Retail investors, banks and wealthy families have increasingly turned to gold, viewing it as a safeguard against global economic uncertainty, he said.
“Most of our clients are long-term holders,” Mr Gregersen added, explaining that the majority of his customers store their gold for more than four years.
“Gold will fall at some point, but I believe given the economic environment, it’s on an upward trend for a least five years,” he said.
As Mr Gregersen highlighted, gold prices fall as well as rise.
Its price may dip if there is a hike in interest rates or geopolitical tensions and political uncertainties ease, said OCBC’s Mr Wong.
In April, for instance, the price of gold fell by around 6% after Trump backed off from firing Fed Chair Jerome Powell, he said.
“Gold is often seen as a hedge against uncertainty, but the hedge can be unwound.”
And in 2022, gold’s value plunged from $2,000 to $1,600 an ounce, after the US central bank raised interest rates to curb the inflation which was triggered by the Covid-19 pandemic, said UOB’s Mr Heng.
A key risk to gold’s current rally is a sudden resurgence in inflation, which could prompt the Federal Reserve to raise rates, he added.
The recent climb in gold prices reflects expectations that the Fed will lower interest rates, making gold more attractive, said Mr Wong.
Meanwhile, Trump has ramped up pressure on the Fed, publicly criticising Mr Powell for not cutting rates quick enough and attempting to fire Fed Governor Lisa Cook.
The president’s targeting of the Fed can “undermine confidence in the [its] ability to act as a credible, inflation-targeting central bank,” said Mr Wong.
In such an environment, gold’s role as a hedge against uncertainty “gains renewed importance,” he said.
