The expert named the reasons for the increase in prices and demand for gold

Illegitimate restrictions by the United States and European Union countries, increased marginality of gold mining and an outstripping increase in global debt have led to an increase in gold prices, which this spring exceeded $3,500 per troy ounce for the first time in history. Along with the increase in gold purchases by central banks and the downgrade of the US sovereign rating, this led to record revenue from gold sales. Fares Kilzie, the founder and head of CREON Group, told about this on May 29, opening the II Eurasian conference "Gold-2025".

According to the Comex exchange, the price of gold has reached $3,340 per troy ounce. In mid-April, the price was at $3.3 thousand.

He noted that the rise in gold prices is outpacing the money supply. Since 2000, gold prices have always followed the growth of the money supply in developed countries. But since December 2023, prices have been rising faster, which indicates fundamental changes in the global economy, including the introduction of various kinds of illegitimate restrictions in different parts of the world.

The record ratio of gold and oil prices is also affecting. According to the expert, the ratio reached its highest in history, excluding the revision of the agreement with OPEC+ in March 2025 and the fall in oil prices in April 2020, when it fell below zero. According to Kilzie, this is beneficial for gold mining companies, since margins are significantly increasing: the price of gold has increased by almost $1,300 per ounce, and the cost of production is only $200-250, depending on the location of the mine.

Gold continues to rise in price rapidly. Answers to the main questions

In addition, the expert drew attention to the fact that during the period of global commodity fragmentation, in April 2025, global debt reached a record $324 trillion, and the commodity market worth $140 trillion a year is chaotically seeking a balance of duties and tariffs in violation of all the rules of the World Trade Organization.

"Fourth, [among the factors driving the price increase] is the growth of gold purchases by the United States and central banks. The United States and central banks of other countries are actively buying up physical gold as part of the reboot of the global financial system. Let me give you an example: gold exports from Switzerland to the United States in early 2025 rose to the highest level in the last 15 years, and reserves at Comex reached the highest level since March 2021," Kilzie explained.

The rise in price was affected by the record value of the demand for gold itself. In 2024, the total value of demand for gold exceeded $500 billion, and in 2025 it could reach $600 billion, the expert believes.

The downgrade of the US sovereign rating is also important. Moody's downgraded the US rating from Aaa to Aa1, questioning the reliability of the country's financial resources. According to Kilzie, there are suspicions that toxic debts may be shifted to the private Federal Reserve, which calls into question the transparency and credibility of all US financial reserves.

"Serious risks remain in the US economy: inflated debt bubbles in the markets, hidden inflation, the trade imbalance that we discussed last year, and the real economy accounts for less than 10 trillion out of 29 trillion of GDP. The national debt exceeds 120% of GDP. American stocks have reached five—year lows relative to the gold price, reflecting a fundamental change in generally accepted rules," Kilzieh concluded.

Speaking about the consequences of shifts in the gold market for Russia, he stressed that Russia knows how to concentrate domestic reserves for strategic purposes.

"The transition to digital assets in parallel with the development of the mining sector in the Arctic and the Far East will be key. Physical and digital gold in the form of digital financial assets will become an example for deep economic reforms despite the resistance of regulators," Kilzie concluded.

Earlier, on April 21, Evgeny Shatov, a partner at Capital Lab, told Izvestia that in the near future, the price of gold could reach $3.5 thousand per ounce. In his opinion, if investors doubt the stability of the US monetary policy, this will give an additional impetus to the growth of metal prices.