Economic Warning Signs Point to Growing Need for Portfolio Protection as Gold Hits $3,500
LOS ANGELES, May 20, 2025 /PRNewswire/ — As recession warnings continue to mount, Lear Capital, a leader in precious metals investing since 1997, is seeing unprecedented interest in gold and silver as protection against growing economic volatility.
“The financial landscape is shifting dramatically, and not in a subtle way,” says Kevin DeMeritt, founder of Lear Capital. “From persistent inflation and record-high government debt to rising interest rates and geopolitical tensions, the economic storm clouds are gathering. Our analysis shows that these conditions historically favor precious metals.”
The company’s latest special report, “Storm Signals: Recession Warning,” details multiple indicators suggesting an economic downturn may be closer than many Americans realize:
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A recent survey found 62% of over 300 CEOs now expect a recession within the next six months
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Record-high credit card debt and rising delinquencies signal consumer financial strain
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The Federal Reserve’s interest rate hikes over the past 24 months have yet to fully tame inflation
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Proposed tariff policies are introducing fresh market volatility and potential inflationary pressure
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Central banks worldwide are stockpiling gold at levels not seen since 1999
Gold prices have responded accordingly, experiencing a remarkable 33.4% increase since last year and reaching a record high of $3,500 per ounce before decreasing more recently. Lear Capital’s earlier prediction that gold could hit $4,200 appears increasingly plausible as economic headwinds intensify.
“What we’re witnessing isn’t just a temporary spike in gold prices,” DeMeritt explains. “These are fundamental economic shifts that validate what Lear Capital has been advising clients for decades — precious metals play a crucial role in protecting wealth during uncertain times.”
The company’s analysis also highlights silver as a potentially undervalued opportunity, noting the gold-to-silver ratio recently hit 100 — an extremely rare occurrence that has historically marked strong buying opportunities for silver. With growing industrial demand from electric vehicles and solar technology, combined with a global silver deficit, silver presents both a hedge against uncertainty and significant growth potential.
“The most successful investors don’t try to time the market perfectly—they focus on being prepared,” adds DeMeritt. “Gold and silver have weathered wars, recessions, monetary policy mistakes, and financial crashes—and come out stronger each time.”
