Morgan Stanley Just Kicked Off a $1T Move Into Gold

Rich Checkan|October 14, 2025

Gold is getting more press than it has in years.

With the precious metal trading over $4,000 per ounce, people are finally starting to notice. CNN, The Wall Street Journal, the Financial Times, and talk radio are all buzzing about gold.

And it’s not just talk…

Ray Dalio of Bridgewater Associates says you should hold 15% of your portfolio in gold.

Morgan Stanley took it one step further. The bank changed its allocation guidance from 60% stocks and 40% bonds to 60% stocks, 20% bonds, and 20% gold.

This is a very big deal…

The Numbers Behind the Shift

Morgan Stanley manages $4.8 trillion in client funds. Twenty percent of that figure means $960 billion would be moving out of bonds and into gold.

Assuming $4,000 per ounce gold, we’re talking about 240 million ounces.

One metric ton of gold equals 1,000 kilograms. Each kilogram contains 32.151 troy ounces. So a metric ton consists of 32,151 troy ounces of gold.

That means Morgan Stanley would potentially buy 7,465 metric tons of gold for clients.

That’s a massive number.

The U.S. holds the largest central bank reserves of gold in the world – 8,133.5 metric tons.

Morgan Stanley’s allocation shift alone would move nearly as much gold as America’s entire reserve.

Now consider that gold’s rise from $1,800 per ounce to $4,000 per ounce over the past two years resulted almost entirely from central banks buying roughly 1,000 metric tons per year for 3.5 years.

That purchase volume is only half of what Morgan Stanley would need to align their clients with this recommendation.

My verdict? Gold’s recent spike to $4,000 is just the beginning…

You Are Not Too Late

I hear all the time about traditional brokers talking their clients out of buying gold because they thought the price was too high.

I’m convinced this happens for two reasons…

First, traditional brokers often don’t understand gold or its role in a portfolio. They focus on what they know and can offer their clients – stocks and bonds.

That may be changing, as Morgan Stanley’s shift suggests.

Second, they don’t want to refer assets away.

In the end, they convince their clients that gold has run its course. They said that at $1,800 per ounce. They said it at $2,400 per ounce. They said it at $3,000 per ounce. They’re saying it again now at $4,000 per ounce.

They’ve been wrong thus far. They’re wrong again.

Congress cannot – or will not – balance a budget. The recent federal government shutdown proves this. Politicians continue to spend more than they receive in revenue.

The result is our massive debt, which leads to monetary expansion and inflation. The increased currency in circulation dilutes every dollar, making each one worth less. It takes more of them to buy anything of value – from a cup of coffee to a college education to an ounce of gold.

Until Congress finds the will to be fiscally responsible, gold’s price is going higher. It really is that simple.

7 Reasons Gold Hasn’t Hit Its Peak

I know it’s easy to feel the “Fear of Missing Out” on gold right now. However, until we see several of the following indicators materialize, it’s unlikely gold has reached its peak…

Gold Price. Conservatively, gold can reach three times the previous bull market peak before running its course. The previous peak was $1,921 per ounce. We have our eyes on $5,700 per ounce.

U.S. Dollar. We would expect to see a strong and strengthening dollar before gold peaks. The U.S. dollar is in a clear and sustained weakening trend, currently trading firmly below 100 on the legacy U.S. Dollar Index.

Interest Rates. We would need to see high single-digit or low double-digit interest rates to dissuade investors from buying gold. With a Federal funds rate of 4.25% and inflation running at 3%, a real return of 1.25% won’t lure investors to certificates of deposit.

Gold/Silver Ratio. The current GSR – the number of ounces of silver it takes to buy an ounce of gold – sits above 80. At the peak of the bull market, we expect that ratio to fall between 35 and 50. We have a long way to go.

Duration. Precious metals bull markets typically last a decade at minimum. We still have a few years left, and this one may run longer.

Dow/Gold Ratio. At the peak of the gold bull market, we expect it to take 5 ounces of gold to buy the DJIA. It currently takes 11.5 ounces.

Sentiment. This remains quite low but is just now starting to turn. The ultra-low premiums on fabricated coins and bars suggest investors aren’t clamoring for gold yet. When was the last time your Uber driver bragged about how much money he or she was making in gold?

Geopolitical and Social Unrest. Is peace breaking out worldwide? Is peace breaking out in the streets of our cities?

Long before gold reaches its bull market peak, we’ll see three or four of the above indicators begin to signal a change. They’ll gather like rain clouds on the horizon. We’ll need to see several before the first raindrop falls.

Take comfort in the fact that none of them are suggesting we’re at the top.

None.

If you haven’t taken a position in gold, do so. After that, average in when you see dips in the price.

There’s no better way to protect your purchasing power for the future – or, as we like to say, to “Keep What’s Yours.”

You can buy gold or silver simply by calling us toll-free at (800) 831-0007 or by emailing us. Be sure to mention that you came from Manward Press. That entitles you to a free one-ounce Silver American Eagle coin for qualifying purchases as well as a free consultation.

We look forward to hearing from you.

Rich Checkan

www.assetstrategies.com
infoasi@assetstrategies.com
(800) 831-0007