Alex Sebastion – Portfolio Adviser Newsletter

22 October 2025

Price down to around $4,000

The price of an ounce of gold has stabilised at just above the $4,000 mark after crashing down from all-time highs of over $4,400.

Longtime gold-bugs and new investors drawn in by its spectacular price rise will all be trying to gauge whether the tide has turned for the precious metal and a protracted price fall is coming, or just a short-term correction.

The precious metal has seen a stellar run over the past three years, climbing from around $1,600 at the end of 2022 to the lofty figure of $4,400 plus.

The rise has been fuelled by concerns over the dollar, inflation, geopolitical trouble and pure speculative momentum.

Some form of correction was inevitable, but whether it resumes its rise after a cooldown or carries on lower to retrace much of the recent gain is yet to be seen.

Eamonn Prendergast, chartered financial adviser at Bromley-based Palantir Financial Planning, said: “Gold’s sharp fall is a reminder that hype often comes before a hangover. Markets move in cycles and fear of missing out can tempt investors to chase momentum at the wrong time.

 “The lesson isn’t whether to buy the dip, but how to avoid being gold-hungry and overexposed to any single asset. A balanced, diversified approach remains the antidote to both panic and euphoria because lasting wealth is built on patience, not FOMO.”

Anita Wright, chartered financial planner at Ribble Wealth Management, added: “This week’s gold price plummet does not look like a bubble bursting. It looks like a shake-out within an ongoing bull market, driven less by hype and more by strain between paper contracts and the supply of real metal.

“Prices have jumped without a big build-up in speculators’ positions, which points to short squeezes and tight physical supply. In that world, sharp pullbacks are normal.

“The big picture is that gold has done this before. Previous bull phases have run much further before topping. On that basis, we are likely only part-way through. If policy makers ease again when risk assets wobble, weaker currencies tend to support gold.

“The forces that took gold to records—high debt, recurring market stress, and a bias to easier money—are still with us. That points to a volatile climb rather than a straight line. In short: this is a correction within a gold bull market, not the end of it.”

Please Note:

This article was first published by Portfolio Adviser Newsletter and is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. 

Please speak to Ethical Offshore Investors or your personal adviser BEFORE you make any investment decision based on the information contained within this article.

At Ethical Offshore Investments, we can access financial instruments to invest in physical Gold (without the cost of storage & insurance) via strictly regulated Exchange Traded Products (ETP’s) listed on the major stock exchanges such as the London Stock Exchange, NYSE, France, Germany & Australia. For those that believe the Gold price will fall, we can access regulated inverse ETP’s that will generate positive returns on negative Gold price movement.

For higher risk opportunities, we can also access leveraged ETP’s which can provide enhanced returns on the price movement.

We do NOT CHARGE any additional entry and/or exit fees to purchase these investments for our clients.

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