Will Trump Add Gold to the U.S. Sovereign Wealth Fund? What It Could Mean for Gold Prices?

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Last Updated on: 9th February 2025, 08:28 pm

With Donald Trump’s recent push to create a U.S. sovereign wealth fund (SWF), many investors are wondering: Will gold be part of it? Given Trump's historic fondness for gold, his distrust of the Federal Reserve, and his economic policies, it’s a fair question to ask. If the U.S. government were to allocate even a fraction of this SWF into gold, it could have major implications for gold prices, global markets, and monetary policy. Again, it's all speculation at this point, but it's worth discussing this potential scenario…

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Let’s break down why Trump might include gold, what it could mean for the U.S. economy, and how it could affect the price of gold going forward.

Trump’s Economic Stance on Gold

Donald Trump has been a long-time advocate of gold as a store of value and a hedge against fiat currency devaluation.

• During his presidency, Trump hinted at a return to the gold standard, criticizing the Federal Reserve’s policies and expressing concerns about the U.S. dollar losing purchasing power.
• In 2019, Trump considered nominating Judy Shelton—a known advocate for the gold standard—to the Federal Reserve Board. Watch the video below to hear Judy talk about this in detail.

With Trump now pushing for the first-ever U.S. sovereign wealth fund, the big question is whether gold will be part of its investment strategy.

Reasons Trump Might Include Gold in the U.S. Sovereign Wealth Fund

1. Gold as a Hedge Against Inflation & Dollar Weakness
   • The U.S. national debt now exceeds $34 trillion, and continuous deficit spending raises concerns about long-term dollar stability.
   • Gold has historically been used as a hedge against inflation and fiat currency devaluation. If Trump believes that the U.S. dollar could weaken, holding gold in the SWF could act as insurance.
2. Competing with China and Russia’s Gold Reserves
   • China and Russia have been aggressively stockpiling gold over the past decade to reduce dependence on the U.S. dollar.
   • If Trump wants to strengthen the U.S. position in global finance, he might push for gold as part of the SWF to counter foreign powers moving away from the dollar-based system.
3. Restoring Trust in the U.S. Financial System
   • Many investors and retirees worry about the long-term stability of the U.S. economy, especially with rising debt and money printing.
   • Including gold in the sovereign wealth fund could signal financial strength and restore confidence in the U.S. monetary system.
4. Trump’s Personal History with Gold
   • Trump personally owns gold and has accepted gold bullion as a form of payment in his business deals.
   • This suggests that he sees gold as a reliable asset, making it more likely that he would advocate for gold-backed investments in a sovereign wealth fund.

How Would This Affect Gold Prices?

If the U.S. government were to allocate billions of dollars into gold, for example, it could have a huge impact on the gold market. Here’s what might happen:

1. Increased Demand → Higher Gold Prices

• The U.S. already holds 8,133.5 metric tons of gold, but a new round of government gold purchases could cause a major price spike.
• If Trump’s SWF were to start acquiring even a small percentage of its assets in gold, it would increase global demand, pushing prices upward.

2. Market Speculation Could Drive Prices Even Higher

• If investors believe that Trump’s government is seriously considering gold as a major asset, gold markets would react before official purchases even begin.
• Hedge funds and institutional investors could front-run the government, pushing gold prices even higher in anticipation.

3. Central Banks May Follow Suit

• If the U.S. starts increasing its gold holdings, other central banks (like China, India, and Russia) might follow, creating a global rush for gold.
• This could further increase demand and drive gold prices to record highs.

4. U.S. Dollar Strength Could Be Impacted

• If the U.S. SWF buys gold, it could send a message to the world that even the U.S. government sees gold as a hedge against its own currency.
• This might weaken confidence in the U.S. dollar, leading to more global demand for gold as an alternative reserve asset.

How High Could Gold Go?

Let's be honest: nobody can give an accurate predicsion here. Gold prices are already near historic highs. If Trump’s SWF adds gold to its portfolio, either by acquiring physical gold bars and coins, or by investing in gold miners or gold ETFs, we could see a bull run in the gold market, and see prices increase significantly.

Some analysts believe that if the U.S. fully embraces gold-backed investments, we could see a new gold bull market similar to the 1970s and 2000s.

Although, again, it's all speculation at this point. This is an opinion piece and shouldn't be taken as financial advice. Speak to your financial advisor before making any investment decision.

Will Gold Actually Be Included in the SWF?

While Trump’s past pro-gold stance suggests it could happen, there are still reasons why it might not:

1. Gold Doesn’t Generate Yield – Unlike stocks or bonds, gold doesn’t pay dividends or interest. Many SWFs prefer income-generating assets.
2. U.S. Already Holds Gold Reserves – The Federal Reserve and Treasury already own a massive gold reserve, so there might not be a need for more.
3. Political Pushback – Many policymakers are skeptical of relying on gold, preferring traditional fiat-based financial systems.

If Trump really wants to use gold, he may invest in gold-related assets instead, such as:

• Gold ETFs (like SPDR Gold Trust – GLD).
• Gold mining companies (like Barrick Gold or Newmont).
• Gold-backed bonds or financial instruments.

Final Thoughts: Should You Buy Gold Now?

If Trump includes gold in the sovereign wealth fund, prices could skyrocket, but again it's speculative at this point. Even if the U.S. doesn’t buy gold directly, the speculation alone could push gold prices much higher.

For Investors:

• If you’re bullish on Trump influencing gold markets, it might be wise to start considering adding gold to your portfolio before prices jump.
• Consider physical gold, but also ETFs, or gold mining stocks as potential plays, depending on whether or not you want to own the physical asset or not.

For Traders:

• Watch for official announcements regarding the SWF’s investment strategy.
• Gold price volatility is likely to increase, creating opportunities for both long and short trades.

Whether or not Trump follows through on adding gold to the SWF, the mere possibility is enough to make gold one of the most exciting assets to watch in 2025.

What Do You Think?

Do you believe Trump will add gold to the U.S. sovereign wealth fund? Would that change your investment strategy? Drop your thoughts in the comments below!

Sources & Further Reading:

• White House Announcement on the U.S. Sovereign Wealth Fund
• Will the U.S. Finally Start a Sovereign Wealth Fund?
• Why Gold Prices Could Surge If the U.S. Buys Gold

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