View from the Street: Money Managers Make the Case for Gold

With gold up 31% since the start of the year, you may be curious, what do professional money managers think of gold and its outlook ahead?

Barron’s recently published its exclusive Big Money Poll: What’s Ahead for Stocks, Bonds and the Economy and money managers articulated the case for gold.

With many money managers voicing concern that the stock market is overvalued with the S&P 500 currently trading at 21 times 2025 estimated earnings, above its 5-year average—physical assets like gold stands out in today’s environment.

A Safe Haven

Gold was seen as a better haven than U.S. Treasuries for investors.

Steven Cucchiaro, CEO and chief investment officer of 3EDGE Asset Management told Barron’s: “I don’t think long-term bonds are a good hedge for market volatility,” adding that gold tends to be less correlated with stocks and bonds over the long-term.

Rising National Debt

It’s not just gold’s value as a safe haven, money managers highlighted the escalation of the U.S. national debt—which continues to rocket to new record highs, and currently stands at $35.8 trillion—as a reason to invest in gold.

Digging Deeper: The ratio of U.S. debt to gross domestic product is nearing 125%. What does this mean?

• “The debt-to-GDP ratio is a metric that compares a country’s public debt to its gross domestic product (GDP). It reliably indicates a country’s ability to pay back its debts by comparing what the country owes with what it produces,” according to Investopedia.
• “The higher the debt-to-GDP ratio, the less likely it becomes that the country will pay back its debt and the higher its risk of default.”
• “High debt-to-GDP ratios could be a key indicator of increased default risk for a country. Country defaults can trigger financial repercussions globally.”

“It’s math,” Rob Medway, managing general partner with MFLP told Barron’s. “Over time, if any country—even the U.S., the world’s dominant fiscal power—continues to increase its debt, the only solution is for currency devaluation.”

A paper currency devaluation would be extremely positive for a physical tangible asset like gold.

Inflation

According to the Barron’s survey, the resurgence of inflation was the number one risk facing the stock market over the next six months. Medway sees gold eventually climbing to $5,000 an ounce if inflation fears continue. Short-term, Medway sees runway for gold to hit $3,500 an ounce.

Other top risks for the stock market ahead include geopolitical turmoil, economic slowdown/recession and excessive stock market valuations.

With so many risks on the horizon, it’s no wonder so many investors are turning to the safety and security of gold today.

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