We just had a brutal day on Wall Street. And if you have retirement savings, chances are you felt it.

On May 23, 2025, the Dow Jones plummeted over 300 points, the Nasdaq fell 250, and the S&P 500 tanked 1%. Traders panicked over fresh tariff threats from President Trump aimed squarely at the EU and Apple Inc. The market didn’t just dip — it buckled.¹

Worse still, bond markets, the so-called safe zone, also collapsed. The 30-year Treasury yield surged to 5.13%, the highest since the last debt ceiling showdown. D.C.’s latest tax cuts triggered fresh fears of another $3.8 trillion being added to the national debt over the next decade.²

Adding fuel to the fire, Moody’s downgraded the U.S. credit rating from its top-tier "Aaa" status to "Aa1". That's the first time Moody’s has ever placed America below its highest rating. The downgrade was driven by rising debt, mounting interest costs, and political dysfunction in Washington. Moody’s sees them all as long-term threats to fiscal stability.³

Let’s call this what it is: the crumbling of the American financial system.

A New Paradigm

In a normal market, bonds typically rise when stocks fall, offering investors some safety. But over the past year, stocks and bonds have moved in the same direction, and that direction is down.

When both stocks and bonds fall at the same time, the old rules stop applying. Traditional diversification 'cushions' disappear, and risk is amplified. For many Americans, the 60/40 portfolio, long held up as gospel by financial “experts”, is failing.

But there’s one thing that didn’t fail. In fact, it soared: Gold. Real, physical gold.

Gold Breaks Records as Stocks and Bonds Fall

While Wall Street reeled from volatility, physical gold was busy breaking records. It hit an all-time high of $3,500 per ounce in April. That's up over 28% this year alone. ⁵

Goldman Sachs now says gold could hit $3,700 by year’s end, citing global central bank buying, rising geopolitical risks, and investor demand for protection from inflation and recession.⁶

The message is clear: Gold is the foundation of a new safe-haven strategy.

The 60/40 Portfolio Is Under Stress

For decades, financial planners told Americans to trust the 60/40 portfolio: 60% stocks, 40% bonds. In theory, when one drops, the other goes up.

But as noted earlier, that balance no longer holds true. The days of bonds rising when stocks fall are gone, leaving many portfolios dangerously exposed. Nowadays, sticking with a traditional 60/40 plan is like riding a roller coaster without a seatbelt.

What can fill the gap left by failing bonds?

Gold.

Time to Go Beyond 5% in Gold?

Old-school advisors still suggest you keep just 5% of your portfolio in gold. But new research makes that sound like you're bringing a Super Soaker to a wildfire.

Studies from the World Gold Council and State Street Global Advisors show that increasing gold holdings to 10% or even 20% not only reduces risk, but it can also boost returns in a market where both stocks and bonds are underperforming.

Using the principles of Modern Portfolio Theory, analysts found that:

• Higher gold allocations reduce overall volatility.
• Portfolios with 20% gold have fared better in stress scenarios than those with only 5%.
• Gold is especially useful when inflation is high, and interest rates are uncertain.⁷

Gold is behaving exactly as it should: providing portfolio insurance when nothing else is.

Gold Goes from Crisis Hedge to Strategic Asset

Gold used to be a "panic" buy. Now it’s a power move. Physical bullion is becoming a core weapon in the arsenals of serious investors.

Governments around the world are proving this point. In 2024, central banks, including BRICS members, China, India, and Russia, bought over 1045 metric tons of gold. That's the third consecutive year in which annual central bank gold demand exceeded 1,000 tons. More than double the 2010–2021 annual average.

These banks aren't speculating, they are strategizing.  They see what’s coming, and they’re preparing accordingly.

For everyday Americans, gold offers the same power it does to central banks. It is immune to political nonsense, global warfare, and currency collapse. It can’t be printed. It can’t be hacked. And it's not tied to the stock market. When you own physical gold, not paper ETFs or “digital allocations”, you own real, portable wealth.

Building a Smarter Portfolio

The takeaway for smart investors? It may be time to rethink the old playbook. In a world where both stocks and bonds are stumbling, staying the course might mean staying exposed.

Based on current research, a more modern, more resilient portfolio might look like this:

50% Stocks (U.S. & global)

25% Bonds (short-term, inflation-protected)

20% Physical Gold

5% Cash or alternatives

Hamilton ETFs ran similar models. Their data showed that even a 10% shift into gold would have made portfolios far more resilient during the 2022 rate hikes, the COVID crash, and today’s market turbulence.⁸

Conclusion

If you’ve been told to stick with a 60/40 portfolio and “ride it out,” you may want to get a second opinion. The world is different now. Stocks and bonds are no longer reliable opposites, and inflation, fiscal instability, and geopolitical risk are becoming the norm, not the exception.

Gold is no longer an “alternative asset.” It’s the core of a modern, freedom-first financial plan. And as global elites buy bullion by the ton, Americans should remember what Ben Franklin said:  By failing to prepare, you are preparing to fail.

Physical gold isn’t just a hedge against chaos, it’s your exit strategy from it. To learn more about protecting your savings with precious metals, especially when held in a Gold IRA, call American Hartford Gold today at 800-462-0071.

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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.

Notes:

1. https://nypost.com/2025/05/23/business/dow-futures-sink-600-points-after-trump-threatens-tariffs-against-apple-eu/

2. https://www.cnbc.com/2025/05/21/republican-spending-bill-driving-up-yields-and-creating-a-major-headache.html

3. https://www.investopedia.com/moody-s-cutting-u-s-credit-rating-11738949

4. https://www.investopedia.com/moody-s-cutting-u-s-credit-rating-11738949

5. https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/highest-price-for-gold/

6. https://www.reuters.com/markets/commodities/goldman-sachs-raises-end-2025-gold-price-forecast-3700oz-2025-04-14/

7. https://www.ssga.com/library-content/pdfs/etf/role-of-gold-in-todays-global-multi-asset-portfolio-sg.pdf

8. https://hamiltonetfs.com/is-mix-worth-its-weight-in-gold/