24
Sep 2025
Gold Outpaces Risky Assets as Wall Street Faces a Paradigm Shift
Gold Outpaces Risky Assets as Wall Street Faces a Paradigm Shift
“The S&P 500 is like an AI ETF, due to how top- and tech-heavy it is. So think about that. Even compared to an index dominated by the world’s big, cutting-edge corporations, gold has outperformed.”
— Joe Weisenthal, Bloomberg Media
Gold’s Surprising Strength
Weisenthal’s observation is spot on. Despite trillions of dollars in quantitative easing artificially boosting stock, bond, and real estate markets, gold has continued to outperform.
The irony is striking: gold is typically bought as a defensive asset, a store of wealth, and a hedge against uncertainty. Yet it has outpaced riskier investments not just recently, but consistently over the past 50 years.
If gold has delivered such steady results, why does Wall Street maintain nearly 0% allocations to physical gold in client accounts? Perhaps Goldman Sachs wasn’t the only firm failing to prioritize clients’ best interests.
Cracks in Financial Markets
Recent headlines underscore the urgency of protecting wealth with physical gold:
The Federal Reserve’s Shift
Perhaps the most consequential news came this week as the Federal Reserve, despite persistent inflation and record market highs, cut rates. This signals an abandonment of its primary mandate: fighting inflation. Foreign investors have already begun selling off U.S. dollar exposure in response.
This would have been tragic to America’s founders, who viewed protecting the currency as paramount. Now, the Fed’s disingenuous policy shift has profound implications for gold.
Goldman Sachs recently noted that if just 1% of U.S. Treasuries rotated into gold, prices could surge to $5,000 per ounce. In reality, history suggests far more than 1% will eventually move as investors recognize the paradigm shift underway.
Influential Voices Aligning on Gold
Some of the world’s most respected investors are now validating what gold advocates have argued for decades:
What Investors Should Do Now
For decades, skeptics have dismissed gold’s rise, saying, “I’ve missed it.” But history proves otherwise: since the dollar was untethered from gold in 1971, the metal has steadily gained ground while paper currencies have lost purchasing power.
Today, with inflation persistent, markets stretched, and central banks shifting, the case for gold is stronger than ever. A 15–25% allocation to gold and silver is not only prudent but, increasingly, consensus among leading investors.
Don’t procrastinate. The greatest risk now is inaction. Protect your wealth before today’s trends accelerate further.
At St. Joseph Partners, we can help craft a solution specific to your needs—whether that means tax-advantaged retirement strategies, direct investments, trust solutions or long-term preservation plans.
God bless you, and God bless America.
Past performance is not indicative of future results.
“The S&P 500 is like an AI ETF, due to how top- and tech-heavy it is. So think about that. Even compared to an index dominated by the world’s big, cutting-edge corporations, gold has outperformed.”
— Joe Weisenthal, Bloomberg Media
Gold’s Surprising Strength
Weisenthal’s observation is spot on. Despite trillions of dollars in quantitative easing artificially boosting stock, bond, and real estate markets, gold has continued to outperform.
The irony is striking: gold is typically bought as a defensive asset, a store of wealth, and a hedge against uncertainty. Yet it has outpaced riskier investments not just recently, but consistently over the past 50 years.
If gold has delivered such steady results, why does Wall Street maintain nearly 0% allocations to physical gold in client accounts? Perhaps Goldman Sachs wasn’t the only firm failing to prioritize clients’ best interests.
Cracks in Financial Markets
Recent headlines underscore the urgency of protecting wealth with physical gold:
- Private Equity Stumbles: Once rebranded from the “junk bond industry” to attract institutional investors, private equity is now struggling. Scarcer takeover targets, rising financing costs, and slower exits have left dealmakers frustrated and clients disappointed.
- Real Estate Under Stress: Over 5,000 apartments in New York City are now slated for auction, plagued by debt and disrepair. Similar strains are visible across both red and blue states.
- China’s Gold Strategy: Beijing is encouraging nations to store physical gold within Chinese borders, underscoring their belief in gold’s long-term importance and raising questions about U.S. custodianship.
The Federal Reserve’s Shift
Perhaps the most consequential news came this week as the Federal Reserve, despite persistent inflation and record market highs, cut rates. This signals an abandonment of its primary mandate: fighting inflation. Foreign investors have already begun selling off U.S. dollar exposure in response.
This would have been tragic to America’s founders, who viewed protecting the currency as paramount. Now, the Fed’s disingenuous policy shift has profound implications for gold.
Goldman Sachs recently noted that if just 1% of U.S. Treasuries rotated into gold, prices could surge to $5,000 per ounce. In reality, history suggests far more than 1% will eventually move as investors recognize the paradigm shift underway.
Influential Voices Aligning on Gold
Some of the world’s most respected investors are now validating what gold advocates have argued for decades:
- Morgan Stanley recently told clients that 20% allocations to gold are appropriate in today’s environment.
- Billionaire Jeff Gundlach stated that 25% allocations are not excessive, given current risks
- Ray Dalio, upon retirement, raised his gold target to 15% of portfolios.
What Investors Should Do Now
For decades, skeptics have dismissed gold’s rise, saying, “I’ve missed it.” But history proves otherwise: since the dollar was untethered from gold in 1971, the metal has steadily gained ground while paper currencies have lost purchasing power.
Today, with inflation persistent, markets stretched, and central banks shifting, the case for gold is stronger than ever. A 15–25% allocation to gold and silver is not only prudent but, increasingly, consensus among leading investors.
Don’t procrastinate. The greatest risk now is inaction. Protect your wealth before today’s trends accelerate further.
At St. Joseph Partners, we can help craft a solution specific to your needs—whether that means tax-advantaged retirement strategies, direct investments, trust solutions or long-term preservation plans.
God bless you, and God bless America.
Past performance is not indicative of future results.
