Gold Rush 2.0: How to Play the New Bull Market

As the price of gold surges to record highs, investors are wondering how to capitalize on this new bull market. The gold market has been on a tear, with the price of gold reaching an all-time high of $2,960 per ounce in early 2025. This article will explore the factors driving the gold bull market and provide insights on how to play the new bull market.

Factors Driving the Gold Bull Market

1. Central Bank Purchases: Central banks have been net purchasers of gold for the past three consecutive years, with 2024 marking the third year of over 1,000 tonnes in net gold purchases. This trend is expected to continue, providing a strong pillar of demand for gold (Source: The Kobeissi Letter, 2025).
2. Investment Demand: Although investment demand increased by 25% in 2024, this was primarily due to a slowdown in ETF outflows rather than fresh inflows. However, the slowdown in outflows and subsequent inflows into global gold bullion ETFs in early 2025 could signal renewed Western investor interest in gold and potential for higher prices ahead (Source: The Kobeissi Letter, 2025).
3. Physical Gold Buying: Physical gold buying has surged, with inventories in the three largest COMEX vaults spiking by 15 million ounces in just two months – a 115% increase that pushed holdings above 2020 pandemic levels. This trend indicates strong demand for physical gold, which is likely to continue (Source: The Kobeissi Letter, 2025).
4. Geopolitical Uncertainty: Geopolitical tensions, such as trade wars and tariffs, have increased demand for safe-haven assets like gold. For instance, Trump's tariff threats ignited a physical gold rush, with investors and traders scrambling to secure bullion before potential price hikes (Source: The Kobeissi Letter, 2025).
5. Inflation and Currency Depreciation: Rising inflation and currency depreciation in developed countries have also contributed to the gold bull market. Gold's status as a hedge against inflation and currency depreciation makes it an attractive investment in times of economic uncertainty (Source: LongForecast, 2025).

How to Play the New Bull Market

1. Invest in Gold Mining Stocks: Gold mining stocks can provide leverage to the price of gold and offer diversification benefits. Consider investing in gold mining stocks such as AngloGold Ashanti (AU) and Gold Fields (GFI), which have shown significant gains in 2025 (Source: The Kobeissi Letter, 2025).
2. Buy Gold ETFs: Gold ETFs like the VanEck Vectors Gold Miners ETF (GDX) offer exposure to a diverse group of gold mining companies, reducing the risk of relying on a single stock. GDX has shown strong performance in 2025, making it an attractive option for investors (Source: The Kobeissi Letter, 2025).
3. Purchase Physical Gold: Investing in physical gold, such as bullion coins or bars, can provide a hedge against market uncertainty and volatility. Consider storing physical gold at home or in a secure vault to minimize risks (Source: The Kobeissi Letter, 2025).
4. Diversify Your Portfolio: Incorporate gold into your investment portfolio to benefit from its diversification properties. Gold has a low correlation with most assets, making it an attractive option for investors seeking to reduce portfolio risk (Source: The Kobeissi Letter, 2025).



Conclusion

The gold bull market is driven by several key factors, including central bank purchases, investment demand, physical gold buying, geopolitical uncertainty, and inflation concerns. To play the new bull market, consider investing in gold mining stocks, buying gold ETFs, purchasing physical gold, and diversifying your portfolio. By taking advantage of these opportunities, investors can capitalize on the gold bull market and potentially achieve significant returns.