We talked everything gold with veteran market expert Clem Chambers at The Master Investor Show 2025 on March 29th. In the candid interview, Clem revealed the driving forces behind gold’s historic run and gave his lofty gold price target.
You’ve seen it all over the years. How long do you think gold’s bull run can last? What’s your take on the main drivers propelling gold?
Clem Chambers: The way to make money in the market is to keep it simple. You said I’ve seen it all — my simple idea is, you haven’t seen anything yet. We’re heading into an incredibly wild period. What’s coming is unlike anything we’ve ever experienced.
It’s easy to dismiss the constant flow of doomsterism. However, we are going into an era which is very, very special, but not necessarily in a good way. So that is one idea you should hold; this is the big one. We are in it. It’s not coming; it’s already here.
Gold is for war
Point two, we drop down one level to gold.
The simple idea is gold is for war. That’s why countries hold gold — no other reason. If you are at war, you have to pay with gold. It is the currency of war.
The reason gold is going vertical is because global stress is rising. We know why, and we know who’s contributing to it. It’s not just someone in America; it’s not just someone in Moscow or Beijing — though none of those are helping. It is the cycle of increased global stress and the trend, which is a slow but short escalation towards an endpoint — war. It is pushing gold because the customers are governments. It’s not us guys, it’s countries buying gold.
As you approach the ultimate destination of war — which hopefully we’ll avoid — you can’t just buy gold the day before. You start going; hmm, things are getting spicy this year or even this month. Then something gets said. “Did you hear that? We might need to top up our reserves and get another five tons of gold.” A week later, it’s: “Actually, make it ten. Keep going.” That is exactly what’s happening in the world now and is demonstrably the case with China because gold is for war.
Xi Jinping has been discouraging kids from playing computer games, telling them to get fit, to stop ‘learning American’ and discouraging Western cultural influence. China wants Taiwan. Funnily enough, America depends on Taiwan for all its value. All the chips that go into Nvidia are made in Taiwan, as are all the chips that go into your Apple device. The whole nervous system of America pivots around China and Taiwan. What’s America doing? Bringing that chip production back onshore. So that’s the cycle towards that end point of America versus China. That’s what Vance essentially said at the Munich Security Conference: ‘We can’t afford to fight on two fronts — go on Europe, your problem Russia; our problem Asia. Gold is for war. The moment that kicked off, up it went.
When things started to get stressed out, gold went up. Now it’s gone up another notch. It looks like it’s going to 5,000. It could go a lot further unless suddenly everybody starts singing Kumbaya. Is that going to happen? Is everyone going to get reasonable and be friends? It’s not going to happen and will only get worse, which will push gold up because ‘gold is for war’ is the use case for gold.
Gold Breaches $3,000 Milestone: Solomon Global Analyse the Forces Driving a Historic Bull Run
Stock market crash
It’s only going to get worse, at least for two years, until Trump loses the House and the Senate because everybody blames him for the crash that we’re in right now. Yes, we are in a stock market crash. The NASDAQ is going to, maybe, half.
Gary Stevenson, a high-profile ex-trader who’s made a lot of money in gold, talks about the wealth gap and how the rich are buying up the assets and driving up prices. Do you buy into that at all?
Chambers: Not at all. Governments are buying gold because the global stress is going up. There’s no increased uncertainty, that’s the trouble. There’s increased certainty. Is anybody not certain things will get worse? The point is, we don’t know how much worse it will get.
AI is going to change the landscape and change the war landscape. Will that impact the demand for gold from governments and central banks?
Chambers: In AI, there is no second place. So, if China gets more AI than America, America is toast. That’s why they’re panicked about Taiwan because that’s where all the AI chips are. If America gets more AI than China, China’s toast, if Europe gets more AI than those two then they’re toast. AI equals energy. It is purely about burning energy to drive those GPUs that are basically fan heaters. They will boil the oceans to be number one in AI. That’s happening right now and it’s why gold’s going up.
There’s a war and it’s AI but that’s a quaternary war where nobody dies. If you have a trade war, that’s a tertiary war; nobody dies, but that filters down into an industrial war that gets a bit spicy. Then you get a territorial war, the old-style war about land. We’re already fighting an information war. Conflict is conflict, but it’s dropping down the staircase of civilisation and heading towards a land war.
You’ve spoken about $5,000 for gold. What’s your timeframe? Is gold going to have a correction before we get there? Is there a roof in the next 10 years?
Chambers: It’s very easy to work it out. Look at the gold chart. It’s going up vertically. Just project that and you’ll be close. If it gets off that trajectory, something’s changed. The important thing about the gold price is when it moves you don’t know the news, it will be in about four days; it moves before you know because we are the last to hear. Just look at gold, it will tell you something nasty is coming. It’s going up vertically, it’s going up straight.
It could stop and could consolidate. If Trump starts hugging Xi, it’ll go down but that’s the only call you have to make: Are these guys who are driving this escalating global stress going to change their tune? Do they not mean what they say? Are they reasonable people? Would you leave your children with them? The answer is no. So, the prospect of gold going into reverse doesn’t feel very high. It’s on that trajectory, and it’s going to stay on that trajectory until something changes. The termination of that move, which could be an early move, is $5,000.
Can you advise those who have never bought gold regarding their portfolio and allocation?
It depends on your scale. If you want to put 10 grand into gold, use someone like Solomon Global. Ring them up; they’ll give you 10 grand’s worth of gold. Find a nice corner somewhere and stick it there, and that’s a little hedge, a little investment. If you’re going six figures, you need to vault it.
There are lots of great providers for coins such as Solomon Global. I have dollar-cost-averaged gold for a long time because I have a diversified portfolio for risk, and everybody should have one. Gold is a good thing to have in any portfolio that is diversified for risk. If you go beyond having 2.5% of your net wealth in gold, the recommended level, you need to consider custody.
For any questions about buying or selling gold and silver, you can contact the Solomon Global team here: https://solomon-global.com/contact/
READ MORE: Golden Opportunities for UK Private Investors
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Buying physical gold as an investment involves risk, as the value of precious metal prices can be volatile. Historical financial performance does not necessarily give a guide of future financial performance. We recommend that you conduct your own independent research and seek professional tax, legal and financial advice before making any investment decisions.
