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Gold has crossed a threshold few expected this quickly. Spot prices surged past $5,100 an ounce in late January, extending a rally that has accelerated over the past year as geopolitical risk, fiscal strain, and currency credibility concerns collide.

Analysts at Goldman Sachs now see gold reaching $5,400 by the end of 2026, while Union Bancaire Privée projects prices near $5,200 by year-end.

This is a spike driven by central banks, not retail investors. According to the World Gold Council, central bank gold purchases are now averaging roughly 60 tons per month, more than triple the pre-2022 pace.

Gold has overtaken the euro as the second-largest reserve asset globally, trailing only the U.S. dollar.

The shift reflects a deeper change in how institutions are thinking about reserves. As geopolitical tensions rise and economic sanctions increasingly target financial assets, gold’s defining feature has reasserted itself.

It is not anyone’s liability, it carries no counterparty risk, and it cannot be frozen by a foreign government.

That dynamic has pushed countries from China to Poland to Hungary to repatriate gold reserves and increase allocations. The Bank of England still houses hundreds of thousands of bars for foreign governments, but the trend is clear. More gold is moving home, and more is being bought outright.

Private investors are watching the same signals. Western gold ETFs have added about 500 tons since the start of 2025, according to Goldman. High-net-worth families and long-term allocators are increasingly using physical gold as a hedge against macro policy risk rather than as a short-term trade.

The appeal is insulation as gold’s role has always been defensive. What has changed is the scale and urgency of demand.

That helps explain why interest in physical gold and gold-backed retirement accounts has accelerated alongside prices.

Preserve Gold is a U.S.-based precious metals firm that focuses on helping investors acquire physical gold, silver, platinum, and palladium for retirement accounts or direct ownership.

Founded in 2022, the company specializes in IRA rollovers from 401(k)s, 403(b)s, and traditional IRAs, as well as insured home delivery for clients who prefer direct possession. Its offerings include IRS-approved coins and bars designed for long-term holding rather than short-term trading.

The firm positions itself around transparency and structure, an important distinction in an industry that has drawn scrutiny for opaque pricing and aggressive sales tactics.

Preserve Gold offers price matching or better, a 24-hour cancellation window, zero-fee buyback on metals purchased through the firm, and waived IRA storage and custodian fees for up to five years depending on account size. Clients work with a dedicated precious metals specialist who remains available beyond the initial purchase.

For investors evaluating gold as part of a broader allocation strategy, that support matters.

Gold’s rally has played out across futures, ETFs, and derivatives. But not all buyers want financial exposure alone.

For investors focused on long-term wealth preservation rather than price timing, physical ownership carries different implications. There is no issuer risk, no fund structure, and no reliance on market liquidity during periods of stress.

That distinction matters to investors who view gold less as a trade and more as insurance. It also matters inside retirement portfolios.

As concerns around inflation persistence, fiscal sustainability, and currency debasement remain unresolved, some investors are diversifying retirement assets away from equities and bonds that move together during market stress.

Rather than holding gold through a paper proxy, investors can allocate a portion of retirement assets to those IRS-approved physical metals held in secure depositories.

Metals are simple in concept but complex in execution. Decisions around product selection, storage, liquidity, and tax treatment have long-term consequences. A misstep can erase the very protection gold is meant to provide.

That is why many investors are not asking whether gold is expensive relative to last year. They are asking whether the structural forces driving demand are temporary or persistent.

Gold’s rise does not guarantee linear gains from here. Prices can and do pull back, but the demand underpinning this move differs from prior cycles.

Central banks are not momentum traders. They are reserve managers responding to structural risk. For individual investors, gold’s role is not to replace growth assets, it is to sit beside them.

For those considering whether physical precious metals belong in their portfolio or retirement plan, Preserve Gold offers a way to explore that decision with clarity, education, and transparent pricing rather than pressure.

You can speak with a Preserve Gold specialist to understand options for physical gold ownership, IRA rollovers, storage, and delivery, and determine whether precious metals make sense for your long-term strategy.

Image: Shutterstock

This article Gold Has Gone Parabolic. Central Banks Are Buying. Here’s Why Some Investors Are Paying Attention Again originally appeared on Benzinga.com

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