Gold surges 40% in a year as Jim Grant warns fiat system is nearing its end

Despite the yellow metal's sharp rally, a new study reveals that portfolio allocation to gold remains historically low, highlighting a disconnect between price action and institutional adoption.

By Handelsavisen Newsroom · Automated 2026-07-26 03:36 UTC · 1 min read

Gold has climbed more than 40% over the past 12 months, driven by a confluence of geopolitical uncertainty and shifting central bank policies.

The rally has intensified debate among market strategists about the long-term viability of the current fiat currency framework.

Jim Grant, the veteran financial analyst and author, argues that the era of unbacked money is drawing to a close, citing the relentless growth of sovereign debt and persistent inflationary pressures as structural flaws in the system.

Grant contends that historically, money has always been anchored to tangible assets like gold or silver, and that the current deviation is unsustainable.

Despite the dramatic price appreciation, investor behavior has not fully caught up with the metal's performance.

A new study indicates that gold allocation in investment portfolios remains at historically low levels, suggesting that many institutional investors are still on the sidelines.