Frank Holmes, a financial analyst specializing in capital markets, says that gold is going through “a period that investors have not seen in decades.” His assessment highlights the structural scarcity of the metal and anticipates that Its price could reach $7,000 per ounce as early as 2029.
Holmes points out that “the third quarter of 2025 was historic” and that the gold market is entering “the beginning of a new era.” Furthermore, he stressed that global demand reached 1,313 metric tons in that quarterwhich is the highest figure ever recorded. This, while global spending exceeded $146 billion.
During the period, Gold averaged a price of $3,456 per ounce, equivalent to an annual increase of 40%. In October, the metal surpassed $4,400 for the first time “before cooling off,” Holmes said.
The boost comes, in part, from central bank purchases. Holmes says these institutions “continued to diversify away from the US dollar,” with 220 tons purchased in that quarter alone.
Gold ETFs recorded largest inflows since 2020
Added to the above was renewed interest among investors. Holmes commented that gold ETFs saw biggest inflows since 2020while the demand for bars and coins “remained above 300 tons for the fourth consecutive quarter.”
The analyst warns, however, that supply faces restrictions. “The gold mining industry is not expanding fast enough to keep up with demand and large discoveries are rare,” he said.
Looking ahead, Holmes recalled that some analysts see gold reaching $5,000 as soon as next year. In fact, the specialist considers it possible that gold will reach a price of $7,000 “at the end of President Donald Trump’s second term.” That is, in 2029, driven by the growth of global debt.
Bitcoin price could rise for similar reasons as gold
The data presented by Frank Holmes highlights two elements: the strength of demand and the scarcity of gold. At this point in the analysis it is pertinent to mention bitcoin (BTC), although it is not mentioned in Holmes’ analysis, given that BTC usually appears in the same conversations in which the behavior of the precious metal is evaluated.
Indeed, both assets are observed by investors under criteria that include scarcity, protection against monetary depreciation and institutional interest.
However, it must be taken into account that the digital currency has, unlike gold, a strictly limited supply and predictable monetary policy. In phases of greater market maturation, these elements could become more relevant.
In dialogue with CriptoNoticias, the Venezuelan economist specialized in bitcoin and cryptocurrencies, Daniel Arráez, stated that the digital currency can even be a better refuge of value compared to the precious metal. Above all, in times of crisis. “But only if it is used for the purpose for which it was created, which is to be an alternative to money kept by a third party, by an authority figure, a control figure,” he said.
For the specialist, bitcoin, although it has had major corrections, “is still a very good asset, which has worked perfectly as a reserve of value and time has only reaffirmed this.”
In that sense, the evolution of bitcoin, although still marked by greater volatility, continues to be observed under similar parameters of scarcity and search for refuge.
Thus, to the extent that its adoption increases, the analysis of the comparison between both assets could become increasingly important in financial markets.