Why More Investors Are Turning to Gold — And How You Can Get Started

When markets feel uncertain, many investors seek stability — and for centuries, gold has offered exactly that. While stocks and bonds can swing wildly, gold tends to move differently, often rising when traditional financial markets fall.

In fact, according to the World Gold Council, over 85% of global investors include some gold in their portfolios. But what makes this precious metal so valuable — and how can you invest wisely?

At Coastal Treasures, we believe in simplifying the gold investment journey. Here’s what you need to know.

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 What Makes Gold So Valuable?

Gold isn’t just shiny — it holds real, lasting value for a number of key reasons:

• Scarcity: There’s only so much gold in the world, and it’s expensive to mine. Limited supply keeps demand (and value) high.
• Global Demand: From central banks and tech firms to jewelry makers, gold is used worldwide and holds consistent value across industries.
• No Third-Party Risk: Unlike stocks, gold isn’t tied to the performance of a company or CEO. You own a physical asset.
• Durability: Gold doesn’t rust, rot, or decay. It’s an investment you can pass down for generations.
• Malleability: Easy to shape into coins or bars, gold has long been used as currency — and continues to be a trusted store of value.

These qualities have made gold one of the most resilient and respected investments in history.

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 Why Add Gold to Your Portfolio?

Investing in gold isn’t just about tradition — it’s a smart way to manage risk in any financial climate.

• Protection Against Inflation: When inflation rises, the value of paper currency falls. Gold often goes up during these times, preserving purchasing power.
• Market Diversification: Gold typically moves independently of stock and bond markets. When markets fall, gold often holds strong — or climbs.
• Liquidity: Gold is easy to buy and sell, especially when you work with a trusted dealer like Coastal Treasures.

Whether you’re looking to diversify, preserve wealth, or build a hedge against market volatility, gold can be a powerful tool.

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 How to Buy Physical Gold: Coins vs. Bars

When purchasing physical gold, most investors choose between gold coins, bars, or jewelry. While jewelry has its appeal, coins and bars typically carry lower premiums — making them more efficient for investment.

• Coins: Flexible, easy to sell, and available in small denominations (as little as 1 gram).
• Bars: Ideal for long-term holders. Available in various sizes, from small gram bars to full kilograms.

 Tip: Smaller weights offer greater liquidity, allowing you to sell or trade in increments rather than large, single pieces.

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 Choosing the Right Precious Metals Dealer

Not all gold is created equal. To protect your investment:

• Look for gold with a purity of at least 99.9% (0.9999 fine).
• Only buy from recognized mints like the Royal Canadian Mint.
• Ensure you receive a certificate of authenticity and serial numbers for bars.
• Partner with a reputable, transparent dealer like Coastal Treasures — one that puts education, integrity, and client care first.

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Ready to Get Started?

At Coastal Treasures, we make it easy to start or grow your precious metals portfolio. Whether you’re looking for your first ounce of gold or a tailored investment strategy, our team is here to help.

At Coastal Treasures, we bring you the finest bullion from the Royal Canadian Mint, renowned for its superior craftsmanship and uncompromising purity.

Each 10 oz silver bar, struck with 99.9% fine silver, proudly features the iconic maple leaf hallmark—a symbol of authenticity, trust, and investment-grade quality. Designed with cutting-edge security features and individually sealed for protection, these bars ensure both peace of mind and long-term value.

Globally recognized and highly sought after, these premium silver bars offer investors a cost-effective way to own bullion, available at less than $3.50 CAD per oz over spot!

BoE’s Announcement

Last Wednesday, the Bank of England (BoE) confirmed that it would require 4 to 8 weeks to deliver the gold currently awaiting shipment.

Background

Even before his election, Donald Trump had signaled his intent to impose tariffs on all imports. While details were unclear, many investors anticipated a surge in precious metal prices.

Following Trump’s victory, the COMEX faced an unprecedented spike in gold delivery requests. This led to a massive airlift of 393 tonnes of gold from the London Bullion Market Association (LBMA) vaults in London to the COMEX vaults in New York, increasing New York’s gold reserves to 926 tonnes. This large-scale transfer depleted the available gold liquidity in the BoE’s vaults.

Possible Default?

Market analyst Andrew Maguire has long warned that the Exchange For Physical (EFP) mechanism, which links COMEX to the London Bullion Market, mandates gold delivery within 14 days. He even raised this concern before the UK Parliament.

The BoE’s 4-8 week delay is, in essence, a default—even if the term is avoided. To address this, the BoE has reportedly asked other central banks to lend it gold that is supposedly stored in its own vaults. (Reuters)

Crisis of Confidence

This situation casts doubt on the transparency of the London gold market and the LBMA’s reported gold reserves. While public figures suggest large gold holdings, much of this gold is tied up in ETFs, central banks, family offices, and Chinese institutions—leaving little truly available for sale.

A similar issue exists in the silver market. Analyst Ronan Manly estimates that 85% of London’s silver reserves belong to ETFs, raising concerns about actual market liquidity.

If the BoE fails to meet its gold delivery commitments, the entire financial system—built on trust—could be shaken.

Impact on the Bond Market?

Adding to the instability, the BoE recently implemented extraordinary security measures for the UK’s government bond market (“Gilts”). This suggests the central bank is already bracing for a broader crisis of confidence. (Reuters)

The “Paper Gold” Problem

Each day, 20 million ounces of gold trade on the London market, with 27 million ounces on COMEX—roughly a year’s worth of production changing hands in a single week.

However, 96% of this volume is “paper gold”—contracts with no physical backing. When the remaining 4% of actual gold is exhausted, what happens next? Could Trump’s tariff-driven market turbulence trigger a systemic breakdown?

China’s Role

Chinese banks have been encouraging clients to hold gold instead of yuan, fueling substantial demand. In response, China has been purchasing gold from London since November 2024.

Notably, Chinese banks have acquired vaults in both London and New York and are accredited by the LBMA. Some of their gold is melted in Switzerland into 1-kilo bars for Shanghai’s physical gold market (SGE), while other reserves remain in Western vaults—potentially creating a false perception of available Western gold stockpiles.

Unlike Western markets, SGE mandates same-day delivery upon sale, ensuring that all transactions involve actual gold, not paper contracts.

If Chinese banks were to demand delivery of their gold from London or New York, during an already volatile period, the entire Western paper gold system could collapse.

What does BU mean?

BU (Brilliant Uncirculated) refers to bullion coins or bars that have never been in circulation and maintain their original mint luster. These products show no signs of wear but may have minor imperfections from the minting process.

What does Circulated mean?

Circulated coins or bars have been used in transactions or handled over time, resulting in visible wear or surface marks. In contrast to BU coins, circulated pieces often have a lower collectible value due to their condition.

What does Assay mean?

An assay is a certification verifying the metal content and purity of a bullion product. Assay cards, commonly used for gold bars, are issued by mints or refiners to guarantee authenticity and quality.

What is the difference between Carat and Karat?

• Carat (ct) is a unit of weight used for gemstones, such as diamonds, where 1 carat equals 0.2 grams.
• Karat (K or kt) is a measure of gold purity. 24K gold is pure gold (99.9%+), while 18K gold contains 75% gold and 25% other metals for added strength.

What is a Hallmark?

A hallmark is an official stamp or engraving on bullion bars, coins, or jewelry that certifies the metal’s purity, authenticity, and the refinery or mint that produced it.

What is an Ingot?

An ingot is a refined bar of precious metal (such as gold or silver) cast into a standard shape for investment or trade. Ingots come in various sizes and purities, often featuring a hallmark and weight indication.

What is a Troy Ounce?

A Troy Ounce (ozt) is the standard weight measurement for precious metals. It differs from a regular (avoirdupois) ounce used for everyday items.

• 1 Troy Ounce = 31.1035 grams
• 1 Standard Ounce = 28.3495 grams

This means that when you purchase a 1 oz gold or silver coin, it weighs 31.1035 grams, not the 28.35 grams of a standard ounce.

One of the most common questions we receive from clients is why the price of a bullion product is higher than the spot price they see online or in financial news. To understand this, it’s essential to distinguish between the spot price and the premium applied to physical bullion.

What is the Spot Price?

The spot price represents the current market value of one ounce of raw precious metal. It is primarily used in electronic trading within the commodities market and does not account for the costs associated with transforming raw metal into a finished bullion product.

Why is Bullion Priced Above Spot?

Bullion is a physical asset, and bringing it to market involves real costs. These include:

• Mining & Refining: Extracting and purifying the metal.
• Fabrication: Producing bullion bars and coins.
• Transportation & Storage: Safely moving and storing the products.
• Dealer Costs: Secure handling, distribution, and operational expenses.

Additionally, premium variations exist based on factors such as product size, brand, and demand. Generally, larger bullion products have lower premiums per ounce because they are more cost-efficient to produce.

How Does This Affect Pricing?

The final price of a bullion product is determined by taking the spot price and adding the premium. At Coastal Treasures, we ensure transparent pricing by displaying live spot prices on our website. This allows our customers to easily see the premium they are paying for any product, ensuring competitive and fair pricing in the market.

For expert guidance on purchasing bullion, contact Coastal Treasures today!

In the years following the global lockdowns of 2020, the world has been repeatedly reminded of the true value of real, tangible assets—the food we eat, the homes we live in, the clothes we wear, the critical minerals that power our daily lives, and perhaps most importantly, our money. The year 2024 was no different. The Canadian Dollar lost another 7% of its purchasing power against the U.S. Dollar, and other world currencies followed suit, eroding the very definition of money as a store of value over time.

While fiat currencies continue their decline, those in control of the global financial system have shifted their priorities. Since 2020, central banks and governments have moved away from holding foreign debt for yield and instead turned their focus toward acquiring strategic, hard assets—with gold and silver at the center of this rush.

Even developing nations have made gold a priority. Ghana, which previously held 19 tonnes of gold (19 times more than Canada…), added 11 tonnes to its reserves in 2024 alone—a 57.89% increase. Meanwhile, Nigeria, with its 21.37 tonnes of gold and a population of over 230 million, formally joined BRICS+ in January 2025, further strengthening the bloc’s influence.

This trend is not limited to smaller economies. The world’s financial superpowers—the United States, China, the United Kingdom, and Canada—have accelerated their accumulation of precious and strategic commodities. What was once a quiet accumulation has now turned into an all-out sprint, as nations scramble to secure dwindling supplies of gold, silver, and critical minerals.

The Race Intensifies – January 2025

Below are key events from the first month of 2025, demonstrating just how quickly this rush has escalated:

January 9, 2025 – U.S. and Denmark Pressure Greenland on Rare Earth Metals

The U.S. and Danish governments spent 2024 lobbying Greenland’s largest rare-earth producer not to sell to China. Currently, China dominates the extraction of these critical minerals, and Western nations are scrambling to secure their own supplies.

January 10, 2025 – U.S. Department of Defense Sounds the Alarm

Pentagon official Adam Burstein stated:

“Securing critical minerals is essential to the defense industrial base, which relies on them for everything from drones and fighter jets to submarines.”

Although silver was not explicitly mentioned, it is widely used in missiles, aircraft, night vision goggles, and more—highlighting its importance to military operations.

January 12, 2025 – UK Urged to Stockpile Critical Minerals

The UK Critical Mineral Intelligence Centre warned that Britain must open new mines or risk severe supply shortages. In the meantime, they recommended immediate stockpiling of critical minerals.

January 17, 2025 – U.S. Debt Crisis Sparks Panic

U.S. Treasury Secretary Janet Yellen announced that the U.S. would need to take “extraordinary measures” to avoid a debt default. If the U.S. were to default, trillions in foreign reserves held by nations like Japan, China, and Canada could be wiped out instantly.

January 27, 2025 – $1 Trillion Stock Market Collapse

The U.S. stock market lost over $1 trillion in a single day, nearly matching the losses of the Dot-Com Crash of 2000. Nvidia, the world’s most valuable company, lost nearly $600 billion—the largest single-day drop in history.

Meanwhile, on that same day:

• Gold dropped just $8 USD
• Silver lost only $0.08 USD

Both metals continued to rise afterward, demonstrating their strength during financial turmoil.

January 28, 2025 – Canada’s Strategic Mining Investment

Foran Mining Corporation signed a $41 million CAD agreement with Canada’s Strategic Innovation Fund to boost critical mineral production, particularly copper—which is a major source of silver as a byproduct.

January 28, 2025 – New U.S. Treasury Secretary Hints at a Golden Future

Scott Bessent, confirmed as the new U.S. Treasury Secretary, had previously stated:

“I think we’re in a long-term bull market in gold. We’re seeing reserve accumulation by central banks.”

His appointment aligns with Donald Trump’s repeated claims that the U.S. is entering a “Golden Age.”

January 29, 2025 – COMEX Demands Gold from London Vaults

The New York COMEX bullion vault placed urgent orders for $82 billion in gold from London, fearing rising costs due to Trump’s new tariffs on multiple countries, including Canada. The delivery wait time jumped from a few days to 4-8 weeks.

This is exactly why holding physical gold and silver in your possession is critical.

January 30, 2025 – U.S. Ramps Up Gold Imports from Switzerland

The U.S. imported 401 tonnes of gold over the past two months—the highest level since 2022, when central banks made record purchases. To put this into perspective, in December 2023, the U.S. imported just 3.3 tonnes from Switzerland.

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A “Golden Age” or a Time of Reckoning?

The world is undergoing a massive financial shift. Governments, institutions, and individuals with foresight are securing as much gold, silver, and critical minerals as possible. The question now is:

• Will this “Golden Age” bring prosperity for all?
• Or will it mark the return of gold as the dominant form of money, rewarding only those who prepared in advance?

Time will tell. But one thing is certain—those who own physical gold and silver will be in the strongest position.

 Stay informed. Stay prepared. Secure your wealth with Coastal Treasures.