Gold’s record-breaking rally shows no signs of slowing, according to Nigel Green, the CEO of deVere Group, a global financial advisory and asset management firm.
Green predicts that two new catalysts could further propel gold’s price surge: a potential revaluation of America’s gold reserves and a significant policy shift in China that will allow insurers to invest in bullion.
Currently, the United States values its vast gold reserves at a remarkably outdated $42 per ounce. However, many leading hedge funds and financial insiders believe that the Treasury might revalue these reserves to reflect current market prices—around $2,800 per ounce. If this revaluation takes place, it could inject an estimated $800 billion into the Treasury General Account. Green sees such a move as a transformative financial event, one that would not only bolster gold’s status as a core store of value but also significantly amplify its already strong rally.
On the other side of the globe, China is making headlines with its own move to boost gold demand. For the first time, Beijing has approved a pilot program allowing insurers to invest in gold—a decision that could unlock billions in new inflows. Given that China’s central bank is already at the forefront of global gold purchases, this policy change is expected to intensify an ongoing shift away from dollar-based assets. “China’s green light for insurers will supercharge demand,” Green noted, emphasizing that the combination of renewed U.S. gold revaluation speculation and increased Chinese buying could send prices soaring.
Green’s optimism is underpinned by broader macroeconomic pressures. Persistent inflation, driven in part by the tariff policies imposed by the Trump administration, continues to fuel fears of a deepening trade conflict. With tariffs on China and other key trading partners stoking uncertainty, safe-haven assets like gold have become even more attractive. Central banks around the world are also accelerating their gold purchases, with the People’s Bank of China increasing its reserves for a third consecutive month in January alone.
In the midst of this perfect storm of factors, the outlook for gold appears more bullish than ever. Critics, however, caution that while these developments could provide a substantial boost to gold prices, they also come with risks. A dramatic revaluation of U.S. gold reserves, for example, might unsettle established financial protocols, and China’s policy shift could have unforeseen consequences in an already volatile market.
Nonetheless, Nigel Green is confident that the momentum behind gold’s rally is unstoppable. With economic uncertainty and geopolitical tensions—from the war in Ukraine to instability in the Middle East and growing friction in the South China Sea—continually reinforcing gold’s appeal, the precious metal seems poised to reach new all-time highs. As the market digests these developments, investors are watching closely, aware that the convergence of these factors could signal a transformative era for gold and the broader financial system.
