# Is gold too expensive? No. It is just becoming essential.
Every time the gold price soars, the same question comes back: is it too late to get in? Looking at the peaks reached recently, many conclude that the train has left the station. Yet that reading is not only wrong, it is dangerous for anyone seeking to protect their wealth over the long term. Gold does not experience bubbles. It experiences readjustments. And the one we are living through in 2025 is anything but irrational exuberance. It is a fundamental monetary realignment.
Updated on September 27, 2026
Analysis of a structural dynamic, not a bubble peak
The misreading made by many investors
On , gold briefly broke through 138,000 euros per kilo, reacting instantly to the latest announcement from the US Federal Reserve. That lightning surge, although followed by a return to around 100,900 euros this week, has none of the hallmarks of a panic top. On the contrary, it embodies the market’s extreme sensitivity to any perception of monetary instability. Follow the live gold price and the pattern becomes clear: investors did not flee into gold out of fear. They returned to it with method and conviction.
A historic rise that looks nothing like a bubble
Since the beginning of the year, gold has gained nearly 40%, posting its best annual performance since 1979. Unlike previous peaks, there are no signs of euphoria. No retail stampede, no explosion of ETF volumes. Only a calm, discreet, powerful readjustment.
This calm market behaviour bears witness to a structural revaluation of gold’s role. It is no longer seen as a temporary refuge. It is being methodically reinstated as a long-term strategic asset. Societe Generale recently raised its allocation to 10% in its multi-asset portfolios. Ray Dalio continues to recommend a permanent 10% weighting in balanced allocations. At Morgan Stanley, Mike Wilson advocates a 60/20/20 model split evenly across equities, bonds and gold. Gold is no longer a peripheral asset. It is now a foundation.
The worrying drift of monetary fundamentals
This rebalancing does not come out of nowhere. It is the direct consequence of a world saturated with debt. In the United States, the federal deficit has jumped by 2,000 billion dollars this year, taking public debt beyond 37,000 billion. Globally, total debt has exceeded 315,000 billion dollars, or more than 330% of world GDP. These figures are no longer anomalies, but a worrying norm.
At the same time, the major currencies are gradually losing their status as stable benchmarks. The dollar is under attack on several fronts: imported inflation, chronic deficits, geopolitical tensions, and political uncertainty surrounding the 2026 presidential election. The euro, for its part, suffers from its energy dependence, its institutional rigidity and sluggish growth. In this environment, gold increasingly stands out as an alternative currency: scarce, apolitical and incorruptible. The link between gold and purchasing power has rarely been so visible.
On September 19, when the Fed confirmed a more accommodative monetary stance than anticipated, gold immediately jumped to 138,000 euros per kilo, and silver to 1,580 euros per kilo. That reaction is telling: markets are no longer looking for growth. They are looking for stability. And gold today is perceived as the only asset capable of guaranteeing it.
Potential that remains largely underestimated
Despite gold’s spectacular rise, flows into ETFs backed by physical metal remain 20% below their 2020 peak. World Gold Council data shows that global gold holdings represent just 2% of total financial assets. This structural underinvestment reveals one thing: the upside potential is not exhausted. It is only just beginning.
In a world that has lost its bearings, major investors are not seeking to speculate. They are seeking to preserve. And gold is becoming the instrument of that long-term strategy. Every correction is seen as an opportunity. Every dip towards 130,000 euros per kilo attracts flows. And the more central banks try to reassure, the more markets understand how little they still control.
Towards a new definition of prudence
A change of perspective is needed here. Investing in gold is no longer an act of defiance. It is an act of lucidity. It is not about protecting yourself against the end of the system, but against its foreseeable excesses. It is not about fleeing risk; it is about refusing blindness.
What 2025 shows us is that gold has reclaimed its rightful place. A place it should never have lost: that of a benchmark asset, immune to passing fads, independent of monetary policies, and fundamentally tied to reality.
Those who wait for the « perfect moment » risk watching it vanish in the rear-view mirror. Because gold is not at the top of a bubble. It is at the start of a cycle. It is not too expensive. It has simply become essential.
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Useful vocabulary and definitions
– Ounce (oz): the international unit of measurement for precious metals (1 oz = 31.1035 grams).
– Kilo (kg): in Europe, precious metal prices are often quoted per kilogram (1 kg = 32.15 oz).
– ETF: an exchange-traded fund backed by physical assets such as gold or silver.
– Fed (Federal Reserve): the US central bank, responsible for the monetary policy of the United States.
– Key interest rate: the rate set by central banks, influencing the cost of credit.
– Budget deficit: the gap between a state’s spending and its revenue.
– Sovereign debt: the cumulative total of borrowings contracted by a state.
– Fiat currency: money with no intrinsic value (such as the euro or the dollar), whose worth rests on confidence.
– Monetary easing: a policy of cutting rates or injecting liquidity to stimulate the economy.
– Tangible asset: a real, physical asset, as opposed to abstract financial assets.
Frequently asked questions about gold
Is gold too expensive after its recent record highs?
No. A high price is not the same thing as an overvalued asset. What we are witnessing in 2025 is a fundamental monetary realignment, not speculative euphoria. There is no retail stampede and no explosion of ETF volumes, only a calm and powerful readjustment. Institutional investors such as Societe Generale and Morgan Stanley are raising their structural allocations, which signals method rather than frenzy. When global debt exceeds 330% of world GDP and major currencies lose their status as stable benchmarks, gold’s price simply reflects reality. It is not too expensive; it has become essential for any long-term wealth preservation strategy.
Why are major financial institutions increasing their gold allocations?
Because gold has reclaimed its role as a strategic, long-term asset rather than a temporary refuge. Societe Generale now allocates 10% of its multi-asset portfolios to gold, Ray Dalio recommends a permanent 10% weighting in balanced portfolios, and Mike Wilson at Morgan Stanley advocates a 60/20/20 model across equities, bonds and gold. These decisions respond to the worrying drift of monetary fundamentals: soaring public deficits, total global debt above 315,000 billion dollars, and currencies weakened by inflation and geopolitical tension. Gold is scarce, apolitical and incorruptible, which makes it a credible foundation when confidence in fiat currencies erodes.
Is it too late to invest in physical gold?
The structural data suggests the opposite. Flows into ETFs backed by physical metal remain 20% below their 2020 peak, and global gold holdings represent just 2% of total financial assets according to the World Gold Council. This underinvestment means the upward cycle is only beginning. Every correction, such as a dip towards 130,000 euros per kilo, immediately attracts new buying flows. Waiting for the perfect moment is itself a risk, because gold is not at the top of a bubble but at the start of a cycle. Progressive, disciplined accumulation remains the approach favoured by experienced wealth managers.
What exactly triggered the surge in gold on September 19, 2025?
At 1:53 a.m. on September 19, 2025, gold briefly broke through 138,000 euros per kilo, reacting instantly to the US Federal Reserve’s confirmation of a more accommodative monetary stance than markets had anticipated. Silver jumped simultaneously to 1,580 euros per kilo. That synchronised reaction is significant: it shows that markets are no longer chasing growth but actively seeking stability. Gold’s extreme sensitivity to any perception of monetary instability confirms its status as the ultimate barometer of confidence in the financial system. Investors did not rush into gold out of panic; they repositioned themselves with method and conviction.
How can a private investor buy physical gold with confidence?
The safest route is to buy certified, numbered bars from an established refiner that guarantees traceability, purity and immediate resale. At Gold & Silver Company, every bar is delivered with its certificate of authenticity and complies with the investment gold standards that carry VAT exemption in the European Union. You can explore our range of certified gold bars, consult our gold guide to structure your first acquisition, or book an appointment with our experts for personalised guidance. Physical metal remains the most direct and durable way to hold this essential asset.
Whether you want to protect your purchasing power, diversify your portfolio or anchor part of your wealth in tangible metal, Gold & Silver Company supports you with certified products and more than 15 years of expertise in physical precious metals.