Fiat Currencies Are Weakening – Here’s Why Gold Could Keep Rising in 2025

Global currencies are under pressure. Rising debt, persistent inflation and monetary intervention have weakened public trust in fiat money.

Investors worldwide, including here in New Zealand, are turning back to gold, a tangible asset that has preserved wealth for centuries.

On this page

• The Growing Vulnerability of Fiat Currencies
• Why Gold Continues to Rise
• A Kiwi Investor’s Perspective
• Expert Insights from Tony Coleman
• Why Choose New Zealand Gold Merchants
• FAQs

The Growing Vulnerability of Fiat Currencies

Across the world, the financial system is under strain. Mounting sovereign debt, persistent inflation and repeated policy interventions have weakened confidence in fiat currencies – paper money backed only by governments.

As that trust erodes, investors are turning toward a timeless store of value: gold.

In this article, we explore why global currencies are showing cracks, why gold’s rise may be far from over, and what that means for New Zealand investors in 2025.

Why Fiat Money Is Losing Strength

1) Debt beyond control

Many major economies are now borrowing simply to repay existing debts. Governments issue more bonds, central banks absorb them and the result is an ongoing cycle of systemic debt expansion. Confidence, once the foundation of fiat money, is showing fatigue.

2) Inflation – the hidden tax

Even when official inflation readings ease, purchasing power can continue to decline. Savers and retirees feel the bite each year.

“Inflation is like a parasite eating your cash a little at a time, leaving you a little less wealthy each year.” – Tony Coleman, Managing Director, New Zealand Gold Merchants

3) Monetary manipulation

From quantitative easing to liquidity injections, central-bank intervention has become the norm. While such policies may stabilise markets in the short term, they can dilute long-term currency integrity.

4) Geopolitical exposure

Freezing of foreign reserves and sanctions highlight how fragile fiat systems can be. Currencies that rely on political stability can falter quickly.

5) The digitisation dilemma

Central bank digital currencies (CBDCs) and tokenised money raise concerns around control, reversals or account freezes – vulnerabilities that physical gold simply does not share.

Why Gold Continues to Rise

Gold’s momentum isn’t a speculative bubble – it’s a rational response to a changing world.

• A store of value through volatility
  When currencies weaken, gold’s purchasing power tends to hold steady. It acts as a hedge against inflation and market uncertainty.
• Record central-bank demand
  Central banks globally are buying gold at elevated levels, diversifying reserves away from fiat holdings to stabilise balance sheets.
• Finite supply, rising demand
  Unlike paper money, gold cannot be printed. Its scarcity becomes more valuable as confidence in fiat systems declines.
• Protection from systemic risk
  Gold’s appeal lies in what it isn’t – it carries no counterparty risk, no dependency on central authorities and no exposure to digital control systems.

Gold’s rise is not reactionary but structural, reflecting a repricing of trust in a world where fiat credibility is fading.

A Kiwi Investor’s Perspective

For New Zealand investors, the story is similar. The NZD remains a fiat currency, vulnerable to global debt contagion, inflation and monetary shifts. Over time, these forces can erode local purchasing power.

• Protect wealth from inflation and currency depreciation
• Diversify beyond property and equity markets
• Hold an asset that’s globally liquid yet locally secure

Gold doesn’t just diversify your investments – it defends your wealth.

Expert Insights from Tony Coleman, Managing Director of NZGM

“I was in my 20s… my investments were at sky-high valuations but, within only a few months, all my wealth returned to zero after the 1987 crash. That early lesson taught me that wealth built on confidence can vanish when the wind changes.”

“Gold’s true power is not its price, but its permanence. When currencies wobble and policies shift, gold stays what it has always been – value you can hold in your hand.”

Coleman’s philosophy – and NZGM’s mission – is simple: financial strength comes from owning real, enduring assets, not promises printed on paper.

Why Choose New Zealand Gold Merchants (NZGM)

When global systems show strain, where you buy gold matters.

Since 1975, New Zealand Gold Merchants has been the country’s trusted name in bullion. Over five decades, we’ve built a reputation for:

• Trust and transparency
• Technical expertise and secure storage
• Sustainably sourced, locally refined gold

With NZGM, you’re investing in real, physical gold – delivered directly to you or safely stored in secure vaults. Never just a paper promise.

 

 

FAQs

1. Is gold a good hedge against inflation in 2025?

Gold has historically preserved purchasing power during periods of high inflation and currency weakness. Many investors use physical bullion as part of a diversified, long-term strategy.

2. Why are fiat currencies weakening globally?

Rising sovereign debt, persistent inflation and frequent monetary intervention have eroded confidence in fiat money backed solely by governments. These pressures drive interest in scarce, tangible assets like gold.

3. How can New Zealanders buy gold securely?

Choose a reputable local bullion dealer with transparent pricing, secure storage options and proven supply chains. NZ Gold Merchants offers locally refined, sustainably sourced bullion with delivery or vault storage.

New Zealand Gold Merchants: Real Gold. Real Knowledge. Real Value.

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