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Gold: Another Magical Milestone of $4,000 per Ounce Surpassed

October 8, 2025. The price of gold has been rising relentlessly lately and today surpassed another magical milestone — 4,000 dollars per troy ounce (oz = 31.1 g). In addition to gold prices, shares of gold miners and companies trading in gold have also surged, as has the price of long-overlooked silver, which has broken a 14-year record. Will the rise in gold and silver prices continue?

Record Milestones in Gold Prices

Why Gold Prices Are Rising

The most common general reason given for the rise in gold prices is that it is a safe haven during times of geopolitical and economic turbulence. That’s true, but there are also many specific current reasons:

Uncontrollable debt: Many countries, led by the U.S., are record-highly indebted, with debts so massive that they are practically unpayable by conventional means. Politicians won’t sell state assets or take responsibility for declaring state bankruptcy. It’s far more likely they’ll first try to delay the problem and repay the debts with newly printed (or rather, digital) money — or more precisely, currency.
Attack on the Fed’s independence: The governor of the U.S. central bank (Fed), Jerome Powell, is under pressure from President Trump to lower interest rates. According to economic theory, governments conduct fiscal policy, and central banks conduct monetary policy. In theory, central banks should be independent from the government to maintain price stability and avoid supporting excessive government spending. In practice, this has often not been the case, as central banks have tended to accommodate governments through loose monetary policy. In any case, political attacks on central bank independence are not a good sign. The Fed eventually slightly lowered rates, even though it is still far from achieving its inflation target, as explained below.
Unrestrained inflation: Inflation is nowhere near under control and, given the above, will continue to rise. Central banks set an “inflation target,” typically 2%, calling it price stability. This means, for example, that if you had savings sitting in a bank account and didn’t invest them, you’d lose 20% of their purchasing power over 10 years — in other words, you’d be able to buy 20% less than before. And that’s not even considering that actual inflation far exceeds the official inflation measured by the consumer price index, which has been adjusted over time to make official inflation appear lower. You can see for yourself what prices around you are doing. For instance, ShadowStats calculates U.S. inflation using the same methodology that was applied in 1980 or 1990 and earlier. Simply put, real inflation is about twice the officially published rate.
Central bank gold purchases: Central banks around the world (especially in Asia and outside Western influence) have been feverishly buying gold for some time. Since July 1, 2025, gold has again become a tier one asset under Basel III banking regulations — that is, a high-quality liquid asset. Another reason is that central banks are reducing their dependence on the U.S. dollar.
The 60/20/20 rule: Have you only heard of the 60/40 rule? It’s the guideline suggesting investors hold 60% of their assets in stocks and 40% in bonds. The idea is that stocks tend to yield higher long-term returns but are more volatile, while bonds have lower returns but provide stability. The 60/40 rule has been around for roughly 60 years. However, by the end of September 2025, a major shift in thinking occurred when investment bank Morgan Stanley began recommending the 60/20/20 rule: 60% allocation in stocks remains, 20% in bonds, and 20% in gold as protection against inflation — the biggest threat to bonds. If even 20% of the vast bond market shifts into gold, its price will skyrocket.
Who owns gold, makes the rules: This is a phrase President Trump posted on social media. For years, the U.S. had been a net seller of gold, but in late 2024 it began buying again. There was also speculation about whether the gold reserves at Fort Knox really exist, with some calling for an audit.
Change in the monetary order: U.S. Treasury Secretary Scott Bessent stated in an interview that a global “monetary re-ordering” should take place — and that he would like to be part of it. That implies it’s expected to happen within the next four years.
Monetary reset: All of the above — unpayable debts, gold purchases, changing financial rules, and justified fears of inflation — fit together like pieces of a puzzle, pointing toward a major monetary shift in which gold will play a key role. Such major changes tend to occur roughly every 30–50 years. The last one happened in 1971 when U.S. President Richard Nixon ended the convertibility of the dollar into gold. Until then (the Bretton Woods system), dollars could be exchanged for gold at $35 per ounce. Shortly after the so-called “Nixon shock,” the price of gold rose roughly thirtyfold.

Will Gold Reach $10,000 per Ounce?

Yes — and probably sooner rather than later. Nothing is ever certain, but it’s likely. Just look back to the start of the new millennium: gold prices have been rising continuously (though not linearly, with occasional pullbacks) since 2000, when the average price was $279 per ounce — compare that to today’s $4,000.

The point isn’t that the inherent value of gold itself has changed (its properties, uses, or scarcity), but rather that, due to the ever-weakening dollar (and other major currencies), the price of gold expressed in depreciating currency keeps rising. Currencies have an inherent tendency to lose value — not only because of the 2% “inflation target” (real inflation being much higher), but also due to the continual expansion of the money supply, which devalues the existing currency in circulation.

And What About Silver?

Silver, whose price lagged for years and was still trading below $30 per troy ounce (31.1 g) not long ago, is now hovering around $48+ and is steadily approaching the psychological $50 per-ounce mark. Historically, when the price of gold rises, silver initially lags behind — but when it catches up, it tends to surge even higher.

The gold-silver ratio is also fascinating. It currently sits around 80:1 — meaning one ounce of gold buys more than 80 ounces of silver. Historically, this ratio was much lower. In the past, gold and silver were fixed at 15:1, and in the last century, the typical range has been 40 to 50:1.

This means that silver is historically undervalued compared to gold. For the ratio to return to its historical average, silver would need to rise two- to five-fold. The only alternative would be for gold to drop by half or more — which, given current circumstances, seems highly unlikely.

Conclusion

Gold and silver simply belong in every investor’s — or household’s — portfolio, even though financial advisors have long recommended absurdly low allocations of 2–5 %. But the tide is turning, and major players like Morgan Stanley now recognize the inflationary risk tied to debt repayment with newly created currency. The 60/20/20 rule (stocks/bonds/gold) is proof of this — a remarkable shift in mindset. Veteran investor, economist, and precious-metals advocate Peter Schiff remarked that he has been active on Wall Street since 1987, yet has never witnessed anything like this before.

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Based on the original Czech article: Zlato: Magická hranice 4000 dolarů za unci pokořena. Co dál?