Why owning an actively managed portfolio of indirect physical gold ownership could help preserve the value of your money

2025 brings an increasingly urgent challenge for savers: safeguarding the value of money in the face of unprecedented global debt, currency volatility, and creeping inflation. While traditional solutions may seem less reassuring, one opportunity stands out for its compelling logic and historic resilience — actively managed portfolios providing indirect exposure to physical gold. This approach leverages both the enduring value of gold and the benefits of professional management in today’s volatile environment.

Shrinking Gold Supply: The Peak Gold Problem

One of the most significant trends shaping the gold market is the ongoing decline in major new gold discoveries. Industry veterans are sounding the alarm:

• Pierre Lassonde (Franco-Nevada founder, ex-Newmont Mining head) notes that in the 1970s, '80s, and '90s, miners discovered several massive gold deposits—at least one 50+ million-ounce deposit and ten 30+ million-ounce deposits every decade. By contrast, in the past 15 years, the industry has found no 50-million-ounce and no 30-million-ounce deposits, and only a handful exceeding 15 million ounces.
• Ian Telfer, Goldcorp chairman, warns that we are “right at peak gold,” with global mine production facing outright decline.
• Rudy Fronk (Seabridge Gold) and Nick Holland (Gold Fields) both agree: reserves are being mined much faster than they are replaced, and the era of growing production is over.
• Kevin Dushnisky (Barrick Gold) underscores that falling grades, shrinking production, lack of discoveries, and long development times are likely to lift prices medium to long term.

Unlike other commodities such as oil — where technological advances can unlock new supply or substitutes can dampen scarcity — gold has no real substitute. As the titans of industry warn, the world is literally running out of economically viable new deposits.

Demand Strength: The New Eastern Gold Order

On the demand side, the landscape has shifted dramatically. As Pierre Lassonde emphasizes:

• Explosive Asian Demand: China and India ("Chindia") now account for over 50% of global gold consumption, having surged from just 10% in 1989. This hunger for gold is structural, underpinned by cultural affinity and a desire for financial security.
• Central Bank Accumulation: Central banks are net buyers of gold, seeking safety amid currency and geopolitical risks.
• Eastern Pricing Power: With the rise of the Shanghai Gold Exchange and the investment appetite of BRICS nations, gold price discovery is steadily shifting from West to East.

The Economic Backdrop: Debt, Fiat Risks, and Safe-Haven Demand

Why does gold matter now? Because systemic economic forces are aligning in a way that makes holding gold more important than ever:

• Runaway Global Debt: Sovereign and private debts keep hitting all-time highs, with no easy remedy in sight. This amplifies risks to fiat currencies, eroding their purchasing power over time.
• Currency Devaluation & Inflation: Gold has always served as a defense against monetary depreciation and inflation, scenarios that are likely as long as central banks resort to debt monetisation and ultra-loose policy.
• Safe-Haven Status: Economic instability, negative real rates, and geopolitical shockwaves reinforce gold’s role as a store of value.

The Power of Active Management and Indirect Physical Gold Ownership

Adding gold to a portfolio is prudent — but doing so through actively managed, professionally overseen strategies delivers additional benefits:

• Dynamic Allocation: Active managers can adjust exposures tactically to respond to economic shifts, gold price volatility, and opportunities among different gold-related instruments (ETFs, royalty firms, producers, and physical gold trusts), maximising risk-adjusted returns.
• Indirect Physical Exposure: Indirect physical exposure-such as such as through fully allocated ETFs or closed-end funds-lets investors benefit from gold’s store-of-value properties without the logistics and security risks of direct personal storage. Meanwhile, economic exposure through shares in gold-related companies can offer additional diversification and upside potential, but does not represent ownership of physical gold.
• Risk Management: Portfolio managers help navigate periods of gold price weakness (such as the recent pullback), balancing physical gold holdings and related assets to protect capital and optimise performance.
• Diversification Value: Gold typically exhibits low or negative correlation with equities and bonds, enhancing portfolio resilience in turbulent markets.

Long-Term Opportunity: A Tightly Held, Under-Owned Asset

There is another, overlooked tailwind: Gold and gold equities remain significantly underrepresented in most investment portfolios, often priced as if gold had stagnated below $2,000 per ounce — even as structural trends now suggest much higher long-term value. This disconnect provides meaningful upside potential for proactive investors.

Conclusion

For anyone serious about preserving the value of their savings amid debt, currency, and geopolitical headwinds, owning an actively managed portfolio with exposure to physical gold is not just an option — it’s a strategic necessity. The supply/demand equation is tightening, the world is shifting toward gold as a security anchor, and professional management unlocks both efficiency and peace of mind. In today’s world, this approach is a powerful foundation for true financial resilience.

About the author

Urs Bruegger is the founder and Managing Director of Bruegger Invest Limited, an FCA-regulated and Swiss-compliant investment management firm. Bruegger Invest Limited offers a range of solutions, including the Gold Reserve account — providing portfolios of indirect physical gold ownership — and the Core Stability Growth strategy. The Core segment in Core Stability Growth accounts is a concentrated version of the Gold Reserve strategy, focused on strategic gold exposure. Full product details are available at brueggerinvest.com.

With the Berne Financial Services Agreement coming into effect in 2026, Bruegger Invest Limited is positioned to support eligible sophisticated and wholesale clients in both the UK and Switzerland, benefitting from enhanced cross-border market access and mutual recognition between the two regulatory regimes.

Disclaimer: This article is provided for informational purposes only and does not constitute investment advice, a personal recommendation, or an offer to buy or sell any financial instruments. The views expressed are those of the author and are subject to change. Past performance is not indicative of future results. Investors should consult a qualified financial adviser before making any investment decisions, especially regarding the suitability and risks of any investment product or strategy. Bruegger Invest Limited is regulated by the UK Financial Conduct Authority and operates in accordance with Swiss FINMA requirements and, from 2026, the Berne Financial Services Agreement framework.