Gold’s best year since 1979 accelerates rally toward $5,000 [Video]

Gold is on course for its most powerful annual performance since 1979 – a year etched in financial history as the prelude to Gold’s most explosive rally ever. 

Then, as now, the world was gripped by inflation, geopolitical instability and collapsing faith in the U.S dollar. The result? Gold surged nearly 120% in a single year, setting up the parabolic spike to $850 an ounce in early 1980 – equivalent to more than $3,000 in today’s money. 

Fast forward to 2025 and the parallels are striking. Gold has already surged more than 40% year-to-date, smashing through record after record. According to analysts at The Gold & Silver Club – the world’s favourite precious metal has logged over 37 fresh all-time highs in just nine months, an achievement unmatched in modern history. 

In the late 1970s, runaway Inflation, an Oil supply crisis and the Middle East debacle shattered market confidence. Traders piled into Gold as the ultimate safe haven. By the end of 1979, the yellow metal had doubled and within weeks of the new decade – it spiked to levels that stunned even the most bullish traders. 

Today’s landscape echoes those same forces. Inflation remains stubborn despite repeated attempts by the Federal Reserve to tighten policy. Central banks, led by China, Russia and the Middle East are accelerating their Gold purchases at record pace. Geopolitical shocks from tariff wars, sanctions and tensions in the Middle East have destabilized global markets. Meanwhile, a looming sovereign debt crisis is forcing traders to pivot into hard assets, with Gold once again at the centre of the flight to safety. 

As analysts at The Gold & Silver Club put it: “The setup is extraordinarily similar to 1979. Every macro driver points to a sustained bull market, not a short-lived rally.”

In light of Gold’s relentless strength, The Gold & Silver Club has raised its official price target to $5,000 an ounce, calling it a conservative estimate within the current cycle. The bullish case rests on a confluence of factors: record central bank demand, structural deficits in global supply and an unprecedented surge in investor flows into Gold ETFs and futures.

GSC analysts argue that just as Gold quadrupled between 1976 and 1980, the current cycle could deliver similar magnitudes of return. “We are witnessing the early stages of Commodities Supercycle and Gold is the flagship trade. A breakout toward $5,000 should no longer be viewed as an extreme scenario, but as a base case,” the firm wrote in a recent client note.

What makes 2025 unique is that Gold is not just rallying in isolation. It is part of a broader surge across Commodities – driven by inflationary pressures, resource scarcity and AI-fuelled industrial demand. Copper, Oil and Silver have all surged in parallel, but Gold remains the asset of choice for capital preservation and wealth transfer. 

As The Gold & Silver Club emphasizes, this rally is not a speculative bubble but a structural shift. The Supercycle is being fuelled by sovereign balance sheets, energy transitions and geopolitical realignments that mirror – and in some respects exceed – the conditions of the late 1970s. 

For traders, the lesson of 1979 is clear: the biggest gains came not in the early stages of the rally, but in the parabolic breakout that followed. Gold’s relentless strength in 2025 suggests history could be repeating – only on a larger scale. With The Gold & Silver Club now forecasting $5,000 an ounce, the risk is not that traders miss incremental upside, but that they miss what could be the most powerful wealth transfer in half a century. 

The only question is: Are you positioned to capitalize on the greatest wealth transfer of our lifetime – or are you still watching from the side lines? 

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: