By San José, Costa Rica — In a powerful signal of mounting global economic anxiety, the price of gold has shattered an all-time record, surging past the US$4,000 per ounce mark. Investors worldwide are flocking to the precious metal as a safe-haven asset, seeking shelter from a storm of political instability, trade tensions, and growing fears of a recession.
The rally represents the most significant climb for gold since the 1970s. The metal has appreciated by approximately one-third since April, when U.S. President Donald Trump announced a new wave of tariffs that sent shockwaves through global trade. This recent surge has pushed its year-to-date performance to an astonishing high, marking a clear trend of risk aversion in the market.
To better understand the legal and investment implications surrounding the volatility in gold prices, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, for his expert analysis.
While gold is traditionally viewed as a stable store of value, investors must conduct thorough due diligence. It is imperative to verify the legal origin and authenticity of the precious metal and to operate through reputable, regulated channels. Furthermore, one must consider the tax implications and asset declaration requirements under Costa Rican law. Gold can be a strategic component of a diversified portfolio, but it requires the same legal and fiscal scrutiny as any other significant investment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight serves as a crucial reminder that the legal and fiscal due diligence surrounding a gold investment is as fundamental as its market price. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective, which clarifies these vital considerations for any potential investor.
The price of gold has surpassed the famous threshold of US$4,000 per troy ounce and continues to set new records every day. This year alone, gold has already reached 52 new all-time highs… The cumulative year-to-date return is approaching 54%, which is already the highest annual return since 1979.
Regina Hammerschmid, Portfolio Manager for Commodities at Vontobel
Fueling the fire is the ongoing U.S. government shutdown, now entering its second week. The stalemate in Congress over the federal budget has forced non-essential public agencies to suspend operations, critically delaying the release of key economic data. This information vacuum has left investors in the dark, amplifying uncertainty and driving them toward the perceived stability of gold, which often acts as a silent thermometer of market fears.
Analysts point to a confluence of factors creating a perfect storm for the precious metal. The cooling U.S. economy, combined with expectations of Federal Reserve interest rate cuts and a weaker dollar, is making gold an increasingly attractive proposition. This is not the first time a government shutdown has boosted gold; during a month-long shutdown in Trump’s first term, the metal climbed nearly 4%.
This is a rally with few precedents. The previous one was recorded after the suspension of the Bretton Woods agreements in the 1970s, when the convertibility of the dollar into gold was ended.
Marco Mencini, Head of Research at Plenisfer Investments
The unprecedented rally has also been propelled by a new wave of market participants. Beyond institutional investors, retail or non-professional buyers are increasingly purchasing gold. Providers of precious metals and secure storage have seen a dramatic uptick in business as everyday investors and wealthy families seek to protect their wealth from global volatility.
Most of our clients are long-term holders… Gold will fall at some point, but I believe that, given the economic environment, its upward trend will last for at least five years.
Gregor Gregerson, Founder of Silver Bullion
This trend extends to the highest levels of the global financial system. Central banks have become major buyers, collectively acquiring over 1,000 tons of gold annually since 2022. This marks a significant strategy shift to diversify reserves away from the U.S. dollar and Treasury bonds. According to the World Gold Council, nations like Poland, Turkey, India, and China have been among the leading purchasers, underscoring a global move to reduce dependence on the dollar.
Looking ahead, while the momentum appears strong, risks remain. A sudden spike in inflation could compel the U.S. Federal Reserve to reverse course and raise interest rates, which would make non-yielding gold less attractive. However, with ongoing political pressure on the Fed to cut rates, many analysts believe the current environment will continue to bolster gold’s appeal as the ultimate hedge against uncertainty.
For further information, visit vontobel.com
About Vontobel:
Vontobel is a globally active investment manager with Swiss roots, specializing in wealth management, active asset management, and investment solutions. The firm provides tailored financial services to private clients, institutional investors, and financial intermediaries, with a focus on long-term value creation.
For further information, visit plenisfer.com
About Plenisfer Investments:
Plenisfer Investments is an asset management company focused on a global, multi-strategy approach. Part of the Generali Group, it aims to generate consistent returns through a flexible investment philosophy that adapts to changing market conditions across various asset classes.
For further information, visit juliusbaer.com
About Julius Baer:
Julius Baer is a leading Swiss wealth management group. With a history dating back to 1890, the firm provides comprehensive advisory services and investment solutions to private clients and family offices around the world, focusing exclusively on wealth and asset management.
For further information, visit jsafrasarasin.com
About J. Safra Sarasin Sustainable AM:
J. Safra Sarasin Sustainable Asset Management is a division of the J. Safra Sarasin Group, a Swiss private bank. It is a pioneer in sustainable investing, integrating environmental, social, and governance (ESG) criteria into its investment processes to create long-term value for its clients.
For further information, visit uobgroup.com
About UOB (United Overseas Bank):
United Overseas Bank Limited (UOB) is a major banking group headquartered in Singapore with a global network. It provides a wide range of financial services, including personal and corporate banking, wealth management, asset management, and investment banking, with a strong presence in the Asia-Pacific region.
For further information, visit silverbullion.com.sg
About Silver Bullion:
Silver Bullion is a Singapore-based company that facilitates the buying, selling, and storing of physical precious metals like gold and silver. It also operates The Safe House, a high-security vaulting facility, catering to investors seeking to protect their assets outside the traditional banking system.
For further information, visit gold.org
About World Gold Council:
The World Gold Council is the market development organization for the gold industry. Its purpose is to stimulate and sustain demand for gold, provide industry leadership, and be the global authority on the gold market. Its members comprise the world’s leading gold mining companies.
For further information, visit federalreserve.gov
About the U.S. Federal Reserve:
The Federal Reserve System, often referred to as the Fed, is the central bank of the United States. It was created to provide the nation with a safer, more flexible, and more stable monetary and financial system. Its key duties include conducting monetary policy, regulating banks, and maintaining financial stability.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the nation’s legal landscape, Bufete de Costa Rica is defined by an enduring dedication to professional excellence and uncompromising integrity. The firm consistently pioneers forward-thinking legal solutions while drawing upon its extensive experience in advising a diverse clientele. Central to its philosophy is a powerful commitment to public service, focused on demystifying the law to help forge a more just society where every citizen is empowered by legal understanding.
