As geopolitical tensions continue to dominate global headlines, gold has surged to a new high, reaching $3,300 at the time of writing. But is this just the beginning?
From the pandemic to the ongoing Russia-Ukraine war and the rising tensions between Israel and Iran, global uncertainty has become the new normal. But how do these events actually impact the price you pay for gold and silver?
Numerous factors shape the price of precious metals, and one way to understand their behavior is by examining how they’ve responded to past economic and political crises. While the landscape has changed, especially with distrust in non-physical assets like crypto and even fiat currency, one pattern remains:
When uncertainty rises, people often seek the safety of tangible assets, such as gold and silver.
Key Takeaways:
Gold Acts as a Safe-Haven Asset: During geopolitical crises and economic uncertainty, investors often turn to gold for its long-term value, limited supply, and low correlation with broader markets. Events like wars, pandemics, and financial collapses consistently trigger spikes in gold prices.
Historical Events Show a Clear Pattern: From the COVID-19 pandemic to the Israel–Iran conflict in 2025, global instability has repeatedly led to surging gold prices, often reaching new all-time highs as risk perception rises.
Investor Sentiment Drives Demand: Gold price increases are often fueled by fear and a lack of confidence in fiat currencies, particularly during banking crises, military conflicts, or inflationary periods.
Silver Reacts Differently: While silver shares gold’s safe-haven status, its price is also strongly influenced by industrial demand, making it more sensitive to broader economic trends in addition to geopolitical factors.
Physical Precious Metals Offer Stability: In a world where fiat money can be printed endlessly and digital assets face skepticism, tangible bullion like gold and silver remains a trusted hedge, especially when navigating uncertain times.
The Safe Haven Effect
In times of market turbulence, investors naturally gravitate toward assets that can retain, or even increase, their value. These are known as "safe havens" due to their historical tendency to perform well during downturns, which are, after all, a natural part of the market cycle.
Many experts argue that the safest approach is a well-diversified portfolio. The ideal safe-haven asset is one with low correlation to the broader economy, high liquidity (easy to convert to cash), limited supply, steady demand, long-term permanence, and functional value that isn’t easily replaced.
Based on these criteria, gold remains one of the most classic and reliable examples of a safe haven.
How Geopolitics Moves Your Metals
Political instability frequently affects investor sentiment, particularly about local currencies and financial systems. In times of uncertainty, particularly during the onset of war, it’s common to see a short-term surge in demand for physical gold, such as gold coins or bars, as people seek safer assets.
However, as the conflict unfolds and markets adjust, gold prices tend to stabilize. The perception of risk plays a significant role in driving people toward gold; however, it's essential to remember that prices will continue to fluctuate as market conditions evolve.
Let’s take a look at some of the major events that triggered gold price spikes over the past five years:
Event
Date
Gold Price Performance
Reason for Spike
COVID‑19 Crisis
Aug 2020
↑ All-time high $2,067/oz
Global panic, inflation fears.
Russia Invades Ukraine
Feb–Mar 2022
↑ $2,043/oz
War in Europe, sanctions, energy insecurity, flight to safe-haven assets
U.S. Banking Crisis
Mar 2023
↑ $1,912/oz
Fear of systemic collapse after bank failures (e.g., SVB and Credit Suisse)
Hamas Attacks Israel
Oct 2023
↑ $2,000/oz
Safe-haven demand triggered by the Middle East conflict escalation
Israel–Iran Escalation
May–Jun 2025
↑ $3,430/oz
Rising tensions and missile strikes raised global risk and safe-haven demand
COVID‑19 Crisis, August 2020
Russia-Ukraine, February 2022
U.S. Banking Crisis, March 2023
Hamas-Israel, October 2023
Israel-Iran, May 2025
The Gold Standard
In the past, the U.S. dollar was backed by gold, meaning it could be exchanged for a fixed amount of the precious metal. Today, however, most currencies, including the dollar, are fiat money, no longer tied to any physical asset. Their value rests solely on the authority of the government and public trust. As a result, currencies are not inherently stable or enduring in the same way gold is.
Even now, banks and financial institutions continue to hold gold in their vaults as a way to diversify and safeguard their reserves.
Since fiat money can be printed in unlimited quantities, many people turn to gold when they worry about inflation or the weakening of a currency. This is why moments of political or economic uncertainty, when confidence in governments or financial systems is shaken, often lead to a surge in gold prices.
The Silver Price.
Although gold and silver share the safe-haven aspect, silver prices are also largely tied to industrial demand.
So while gold primarily responds to monetary and geopolitical events, silver also reacts to them, but mainly to economic activity and industrial trends.
Top 10 Bullion Products to Own
1. Silver American Eagles – For Liquidity in Uncertain Times
American Silver Eagles are trusted and instantly recognizable, making them highly liquid during crises. In events like trade breakdowns or financial instability, their government-backed authenticity offers peace of mind. They're ideal for bartering or making small purchases when digital systems are down. Having a supply can bridge the gap during local or national economic disruptions.
2. 1 oz Gold Bars – For Portable Wealth in Global Emergencies
Gold bars offer compact, concentrated wealth that's easy to transport across borders. In a scenario like Russian aggression escalating into NATO conflict, mobility and value preservation become vital. These bars are easily stored and can be sold or exchanged in nearly every country. They provide flexibility when relocating or accessing international markets.
3. 100 oz Silver Bars – For Bulk Value During Supply Shocks
In a supply chain crisis—such as one caused by trade tensions with Mexico or a shipping blockade—large silver bars provide efficient storage of wealth. They're ideal for serious stackers looking to maximize ounces per dollar. Though less liquid than coins, they serve as a strategic reserve for long-term stability. Great for converting into smaller pieces if needed later.
4. Gold Maple Leafs – For International Recognition and Purity
These .9999 fine gold coins are globally respected and easily verified by dealers worldwide. Their high purity makes them especially valuable in regions with strict standards or during customs inspections. In the event of geopolitical upheaval, their recognizability ensures swift liquidity. Canadian Gold Maple Leaf coins are a smart hedge if you foresee potential emigration or travel under duress.
5. Junk Silver (90% Silver Coins) – For Bartering and Small Transactions
In the event of a domestic crisis, such as prolonged power outages or weather-related civil unrest, small-denomination silver coins can be used to purchase everyday essentials. They're fractional, pre-1965 U.S. coins that people are already familiar with. Their face value helps establish trust in person-to-person exchanges. Owning them means you’re ready for local, off-grid trade situations.
6. 10 oz Silver Bars – For Balancing Flexibility and Volume
These bars strike a sweet spot between portability and value storage. In economic disruptions, such as rising oil prices or fuel rationing, they can be sold incrementally. Easier to handle and sell than 100 oz bars, they also take up less space than bags of coins. They’re a practical tool for medium-range financial readiness.
7. 1/10 oz Gold Coins – For Emergency Cash Equivalents
These small gold pieces serve as ultra-portable cash in worst-case scenarios. Whether facing unrest in urban areas or needing to bug out quickly, they’re discreet and universally accepted. Their size makes them ideal for precise exchanges or bribes in extreme conditions. Keeping a few on hand could be crucial when ATMs are down or banks close.
8. Silver Rounds – For Private Wealth Outside the System
Unlike government-minted coins, silver rounds don’t carry a face value, offering greater privacy. If bank accounts are frozen or capital controls are enacted, rounds let you operate outside the financial grid. They're easy to accumulate, stack, and trade with other prepared individuals. Useful in periods of distrust toward institutions or during the rollout of digital currencies.
9. Fractional Gold Bars – For Fine-Tuned Diversification
Owning 1g, 2.5g, or 5g gold bars gives you flexibility in response to inflationary spikes or currency devaluation. They allow strategic liquidation—selling just what you need, when you need it. If inflation accelerates due to energy shocks or war, small gold units provide agile purchasing power. They complement your core holdings by covering short-term needs.
10. Gold-Silver Ratio Strategy – For Tactical Readiness
Holding both metals in a ratio lets you adjust as markets shift—selling silver to buy gold (or vice versa) depending on trends. In volatile global scenarios, like escalating wars or shifting alliances, this approach can amplify purchasing power. The ratio historically rebalances over time, giving savvy holders trading opportunities. It’s a strategic edge in unpredictable conditions.
SD Bullion’s Trusted Buyback Policy
At SD Bullion, we understand that geopolitical uncertainty can prompt both buying and selling decisions. That’s why we offer a secure, transparent, and competitive Buyback Policy for when you're ready to rebalance your holdings, take profits, or liquidate part of your portfolio.
Our process is designed to be efficient and straightforward, whether you’re responding to market shifts or making a strategic financial move. We offer industry-leading pricing, fast transaction times, and discreet service, all backed by a team of experts ready to assist you every step of the way.
For further information, reach out to our team of experts at 1(800)294-8732 or through our web chat feature.
Final Takeaway
In this article, my goal is to help our readers understand how global events can impact the prices of gold and silver.
The intention is not to spread fear but to highlight practical measures you can take if you're feeling concerned.
Fear and anxiety are natural, especially when we're dealing with things beyond our control, but instead of letting those feelings paralyze us, we can choose to act wisely and stay alert to opportunities.
Murilo (Mo) Menezes is an attorney and tenured English professor. His passion for economics and coinage led him to the gold and silver industry where he writes in-depth articles about collectible coins; as well as coin news and investing articles.
