Why Central Banks Are Buying Gold Like Crazy | Levi Gunter

Summary

Levi Gunter of OneGold at APMEX explains the drivers behind gold's rally and remains constructive on gold and silver into year-end. He cites record central bank buying, inflation risk, geopolitical/trade-war uncertainty, and potential Fed cuts, forecasting gold near $3,200 and silver around $38. He also discusses how recessions can create initial selloffs in metals, and compares physical/vaulted ownership with ETFs and mining stocks.

• Gold has rallied toward $3,000, with 2024 up about 26% and 2025 up about 10% so far.
• Central banks have bought over 1,000 metric tons annually for three years, with Q4 purchases up 54% year over year.
• Levi sees central bank demand, inflation risk, geopolitics, and possible Fed cuts supporting gold toward $3,200 by year-end.
• Silver is tracking gold but has a multi-year physical supply deficit and industrial demand from solar, with a $38 year-end target.
• Recessions can initially pressure gold and silver, followed by safe-haven inflows and buying opportunities; silver may lag in recovery.
• OneGold offers vaulted physical metals with title, insurance, audits, physical redemption, and lower storage fees than typical ETF management fees.
• Levi prefers physical/vaulted metal for long-term holders and views ETFs as better suited for short-term speculation.
• He mentions a 10-20% gold allocation range as common and says he is personally closer to that.