Gold (GCJ25) is back in the spotlight as a safe-haven asset, with prices hitting record highs and demand booming worldwide. In 2024, spot gold prices delivered an impressive 27% annual return, reaching an all-time high of $2,940 per ounce in February 2025.
This surge has been driven by rising geopolitical tensions, economic uncertainty, and central banks buying over 1,000 tons of gold for the third year in a row. Gold ETFs have also played a big part in this growth, pulling in $3.4 billion in global inflows last year and pushing total assets under management to a record $271 billion.
One fund leading the charge is SPDR Gold Shares (GLD), the largest gold-backed ETF in the world. GLD gained traction as more U.S. investors turned to gold — 38% in 2024 compared to just 20% in 2023. Inflation worries and tariff threats under President Donald Trump have only added fuel to the fire, sending gold prices past $2,900 per ounce and sparking predictions they’ll break $3,000 in the near term.
Politicians like Rep. Mark Green have jumped on board, making big moves into gold ETFs as a way to hedge against economic uncertainty. With prices climbing, demand at record levels, and ETFs like GLD seeing renewed interest, it’s clear why gold has become such a hot topic for investors in 2025. Let’s dive in.
SPDR Gold Shares (GLD) Overview
The SPDR Gold Shares (GLD) ETF is one of the simplest ways to invest in gold without the hassle of owning and storing the physical metal yourself. Launched on Nov. 18, 2004, GLD operates as a trust that holds physical gold in secure vaults, mostly in London, under the care of HSBC (HSBC) and JPMorgan (JPM).
Each share of GLD represents a small portion of this gold, giving investors a straightforward way to track gold prices while avoiding the challenges of buying, storing, and insuring gold bars or coins.
The fund creates and redeems shares in large batches (100,000 shares at a time), and gives them to authorized participants who then sell them on the open market. This setup keeps the fund liquid and easy to trade, making it a go-to choice for both large institutions and everyday investors.
GLD’s entire focus is on physical gold — it doesn’t hold any other assets. This makes it a reliable way to follow gold’s price movements. As of February 2025, GLD has seen impressive growth, with its price jumping 42.7% over the past year.
So far this year, it’s already up 10.3%, thanks to rising demand fueled by expectations of Federal Reserve rate cuts and ongoing global uncertainties. In just the past month alone, GLD climbed nearly 8%, reflecting broader market trends like central banks stocking up on gold and growing retail demand in countries like China.
With $81.31 billion in assets under management and an average daily trading volume of about 144,685 shares, GLD is the largest gold-backed ETF in the world. This scale not only highlights its popularity but also ensures that it remains highly liquid and easy to trade.
For politicians like Green, who recently made significant investments in GLD, these features make it an attractive choice for hedging against economic risks like inflation and market instability.
Although GLD doesn’t pay dividends, its real value lies in giving investors direct exposure to gold prices without the headaches of owning physical gold. The fund charges a 0.40% expense ratio, or $40 on an initial $10,000 investment.
Why Politicians Are Betting Big on Gold
Gold has always been seen as a safe place to invest during uncertain times, but 2025 has taken its appeal to a whole new level. This year, gold prices have hit record highs, and it’s not just regular investors taking notice—politicians like Rep. Mark Green are making big moves too.
Green bought up to $500,000 worth the GLD ETF in a transaction on Feb. 3. He also invested up to $1 million earlier in January. His actions reflect a growing trend among political figures who are turning to gold ETFs as a way to protect their portfolios from market swings.
There’s a lot driving this rush to gold. For one, the global economy is filled with volatility. Trump’s new tariffs on aluminum and steel have sparked fears of a trade war, pushing more investors toward gold as a safe bet.
Big banks like JPMorgan and Goldman Sachs are predicting that gold prices could cross $3,000 per ounce by the end of the year, thanks to ongoing inflation worries and central banks continuing to buy up massive amounts of gold.
On top of that, falling interest rates make gold, which doesn’t pay interest, more attractive compared to other investments. The Federal Reserve is expected to cut rates further this year, which could boost demand for gold even more.
Geopolitical tensions are also playing a big role. Conflicts in Ukraine and the Middle East, along with uncertainty around U.S.-China trade relations, are making gold an even more appealing choice for those looking for stability.
For people like Green, investing in GLD isn’t just about following a trend. It’s about preparing for what’s ahead. By putting money into the GLD ETF, they’re not only hedging against inflation, but also positioning themselves to benefit from gold’s continued rise.
Conclusion
As gold prices soar to record highs, it’s no surprise that politicians like Rep. Mark Green are piling into the GLD ETF, a fund that offers a straightforward, efficient way to capitalize on the precious metal’s safe-haven appeal. With central banks stockpiling gold, geopolitical tensions simmering, and the Federal Reserve signaling rate cuts, the conditions are ripe for continued growth in gold-backed ETFs. For investors seeking stability in uncertain times, GLD presents itself as more than just a hedge—it’s a strategic move, and clearly, even those in Washington are taking notice.
