In a year dominated by inflation anxiety, geopolitical tension, and rising distrust in government spending, one asset is making a decisive comeback: gold. The price of spot gold has surged more than 20% in 2025, with most of the gains realized in the first quarter. And if you ask hedge fund titan David Einhorn, this bull run for gold is far from over.

At the Sohn Investment Conference in New York this month, Einhorn, the president of Greenlight Capital, made a compelling case for continuing to hold—and buy—gold in the current economic climate. “Gold is about the confidence in the fiscal policy and the monetary policy,” Einhorn told CNBC. “And since we bought gold in 2008 or so, it’s been very clear to me that the U.S. fiscal and monetary policies are both too aggressive and create a risk.”

That risk, he notes, is precisely why investors should continue turning to precious metals—especially as the broader market sends conflicting signals.

Hedge Funds Turning to Gold in Droves

Einhorn isn’t alone. An increasing number of institutional investors, family offices, and retail investors are flocking to physical gold and silver as a hedge—not just against inflation, but against long-term fiscal mismanagement and political dysfunction.

In the first quarter of 2025, Greenlight Capital posted an 8.2% gain, according to Reuters, while the S&P 500 fell more than 4%. A large part of that performance was attributed to defensive positions, with gold playing a critical role.

This signals a broader institutional shift toward hard assets, especially in an environment where the Federal Reserve, Treasury Department, and Congress show no signs of slowing spending or tightening the money supply in any meaningful way.

Einhorn even took a shot at Washington’s half-hearted attempts to trim fat, pointing to the ironically titled “Department of Government Efficiency.” He remarked that its cost-cutting measures were barely noticeable against the backdrop of a ballooning federal budget.

“There’s a bipartisan agreement to do nothing about the deficit until we actually get to the next crisis,” he said bluntly.

Inflation Isn’t the Only Risk—But It’s Still a Big One

Though Einhorn emphasized that he doesn’t see gold solely as an inflation hedge, he also confirmed he’s betting on rising prices through long-duration inflation swaps. That tells us something critical: markets might still be underestimating how persistent inflation could become.

While CPI data has shown brief moments of moderation, sticky costs—particularly in housing, healthcare, and energy—continue to erode purchasing power. And with the U.S. debt-to-GDP ratio at historic highs and rising, inflationary pressure could return with little warning.

“All of these behaviors ultimately lead to inflation, and higher inflation,” said Einhorn.

Gold, by contrast, does not rely on the promises of central banks or government accountability. It simply holds value over time, a feature that’s gaining attention in an increasingly unstable world.

Why Gold—and Why Now?

The renewed interest in gold isn’t just about fear. It’s also about opportunity.

• Gold has outperformed equities in 2025, offering a rare safe haven with growth potential.

• Central banks continue to stockpile gold, signaling long-term faith in the metal.

• Geopolitical uncertainty, from Taiwan to the Middle East, only enhances the value of portable, globally recognized stores of wealth.

At the same time, silver, platinum, and other precious metals are gaining traction—especially among investors looking to diversify their exposure to hard assets.

A Generational Wealth Strategy

With market volatility rising and trust in Washington falling, owning physical gold isn’t just a strategy—it’s a statement. For long-term investors looking to preserve purchasing power, hedge against fiscal insanity, and build generational wealth, precious metals offer something fiat currency can’t: resilience.

The resurgence in gold isn’t a short-term trade. It’s a reflection of something deeper—an awakening among investors that real assets, not printed promises, will define the next decade of wealth.

Take the Next Step with GoldenCrest Metals

If you’re ready to diversify your portfolio, protect your retirement, or simply understand your options in today’s uncertain economy, the specialists at GoldenCrest Metals are here to help.

With decades of experience and a proven track record of helping Americans preserve wealth through precious metals, GoldenCrest Metals offers the insight and integrity you need to make informed decisions.

Contact a GoldenCrest Metals specialist today to learn how gold, silver, and other metals can fit into your investment strategy—before the next crisis arrives.

Source:

https://www.cnbc.com/2025/05/14/hedge-fund-manager-einhorn-sees-upside-for-gold-and-inflation.html