Two years ago, one of America's biggest hedge funds bailed on gold...
Less than 1% of Bridgewater Associates' fund was invested in the metal. And by August 2023, that investment fell to zero. Bridgewater sold all of its gold shares, a transaction worth about $163 million.
The timing couldn't have been worse.
Since Bridgewater announced its gold sale, the metal has surged 77% – more than doubling the return of the S&P 500 Index. That would have turned Bridgewater's initial investment into about $289 million in less than two years.
Bridgewater misjudged the gold market. But as I'll discuss in a second, so did most of the Western world...
Today, that's changing. After missing the boat for years, North American and European investors are waking up to the opportunity in gold. And that could push prices higher than anyone expects...
This Gold Bull Market Might Just Be Starting
I've written recently about two major sources of gold demand in recent years...
One is Chinese investors, who are spilling into all sorts of metals (including gold, but most recently, platinum).
The other is central bankers, who are stacking gold in their vaults to hedge against political uncertainty and a falling U.S. dollar.
These buyers are moving the needle. Gold prices hit an all-time high above $3,434 on April 21. And the rally is showing little sign of slowing down...
But gold's recent bull run isn't the surprising part. It's that Western investors have stubbornly avoided the rally.
One way we can see this is through shares outstanding of SPDR Gold Shares (GLD). This fund holds physical gold in a vault. It allows investors to get exposure to gold without worrying about storing it themselves.
Importantly, GLD is an open-ended fund. That means it can create or liquidate shares based on investor demand...
When investor interest in gold picks up, GLD creates more shares. And it can withdraw shares when investor interest lags.
The fund's share count has plunged since 2020. But SPDR Gold Shares has rallied in price despite investor apathy. Take a look...
Even the gold rally hasn't been enough to get Western investors to buy GLD.
We can see this specifically through purchase data from the World Gold Council. According to this metric, investors in North America and Europe have been net sellers of gold since 2022. Take a look...
Westerners didn't just ignore gold during the recent rally. They sold as the metal trended higher. And the bears have only just admitted defeat and started buying.
In other words, Western investors are finally "getting the memo" on gold's ongoing bull run. And now, the metal has yet another new source of demand.
If you've missed the gold rally so far, you're not the only one. But with Western investors finally joining the party, it's a great time to go long.
Don't make the same costly mistake as Bridgewater did in 2023... Add gold to your portfolio today.
Good investing,
Sean Michael Cummings
Further Reading
Gold has made a steady move toward all-time highs in 2025. And while big institutions have led the way for years, everyday investors are finally waking up to the opportunity. That's a sign that we're transitioning into the next phase of the rally, where the biggest gains begin.
"Just because a stock has run up a lot, that doesn't necessarily mean it's too late to buy," Whitney Tilson writes. Some stocks never fall out of favor during their run-up. That's why thinking you "missed it" can be so dangerous – and keep you from capturing a life-changing return.
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