Gold Prices Rise on Safe Haven Buying After Middle East Turmoil

For those who haven’t been glued to the news cycle the past few weeks (which is probably most of us), the news that the Syrian government fell on December 8th probably came as quite a shock. Rebel forces made a quick sprint across the country and took Damascus largely without firing a shot, ending decades of the Assad family’s rule of the country.

What that means for the future of Syria and the Middle East remains to be seen, and depends on which rebel faction ends up gaining control. But the uncertainty that it brings to the Middle East, which has already been on edge, has helped boost safe haven demand for precious metals like gold and silver.

Gold and Silver as Safe Haven Assets

Gold and silver have served as safe haven assets for centuries, and are among the first assets people turn to during times of crisis and uncertainty. And with everything that has happened over the past few years, it’s no wonder that people are feeling more uncertain all the time.

During the recent presidential election, the economy was arguably the most important issue to most voters, especially for those who ended up voting for President Trump. And while hopes remain high for Trump to fix the economy, there’s no denying that the economy is facing some major headwinds.

The labor market is softening, manufacturing is weakening, and consumer spending is slowing. If you see similarities between today and the months preceding the 2008 financial crisis, you’re not alone.

The Federal Reserve has begun a series of rate cuts, just as it did in 2007. Fears of recession are growing. And memories of 2008 are still at the back of many people’s minds.

But that’s not the only thing people are thinking about.

Will International Conflict Intensify?

Fears of World War III are growing too. With the range of international conflicts currently ongoing, and the major powers involved, there’s a reason for those fears.

2022 saw the outbreak of war in Europe, as Russia invaded Ukraine, and 2023 saw the outbreak of war in the Middle East as Israel responded to the October 7 Hamas terror attack. Both of those conflicts accelerated in 2024, with Israel and Iran trading attacks , and Ukraine making a counter-incursion into Russian territory.

With the Syrian government now having fallen, and Israel, Turkey, and the United States all attacking targets in Syria in the aftermath, there is a great deal of uncertainty about what the future of the Middle East will hold.

No one wants to see a protracted Middle Eastern war, yet no matter how much we wish for the conflict to end, it just seems to continue. Syria’s collapse creates another power vacuum, but who will fill it?

Will ISIS take advantage of the turmoil to establish a new caliphate in Damascus? Will Israel and Turkey take advantage of the interregnum to establish buffer zones to protect themselves against terrorist attacks?

And what will happen to US and Russian troops that remain in Syria? There are numerous unknowns, and 2025 in the Middle East could turn out to be very interesting.

Add to everything that’s going on right now the fact that President Trump is being inaugurated in January, and has stated that unless Hamas releases all the hostages it currently holds by the time he is inaugurated, there will be all hell to pay. Could that end up fanning the flames of conflict even further?

At the back of everyone’s mind, too, is whether there will eventually be a war over Taiwan, as Chinese saber rattling continues in Asia. And with Russia’s recent use of ballistic missiles to attack Ukraine, fears of World War III, which a few years ago might have been dismissed as overblown, are growing in many quarters.

Can You Protect Yourself?

With both economic uncertainty and international conflict seemingly increasing, it’s understandable that many people today are fearful. They may fear war, recession, job loss, or other calamities.

And any of those calamities could impact their financial well-being, whether in the form of higher prices, unavailability of goods, or loss of wealth. So what can you do?

Many Americans have already tried to help safeguard their financial well-being with gold and silver. With their reputation as safe haven assets, gold and silver remain popular safe havens when times get tough, and today is no different.

One popular method of wealth preservation is through a gold IRA, which allows you to use tax-advantaged retirement savings to purchase precious metals like gold and silver.

Gold IRAs are subject to all the same rules as other IRAs, including those regarding distributions, rollovers, and RMDs (required minimum distributions). Gold IRAs can be both Traditional gold IRAs, which are funded using pre-tax dollars, or Roth gold IRAs, which are funded with post-tax dollars or through Roth conversions.

Many people choose to fund their gold IRAs through rollovers, which allow you to move funds tax-free from your existing 401(k), 403(b), TSP, IRA, or similar retirement accounts into a gold IRA. Once those funds are rolled over into a gold IRA, you can then use them to purchase IRA-eligible gold coins or gold bars.

A gold IRA can serve as an additional tool in your arsenal, a means to diversify your portfolio, manage your risk, or provide you with a potential safe haven during times of uncertainty. And with gold pushing to record highs in 2024, it can even provide you with price growth.

If you’re worried about what the future holds, maybe now is the time to start thinking about what gold and silver can do for you.

At Goldco we have over a decade of experience helping thousands of customers benefit from owning precious metals. With over $3 billion in precious metals placements and over 6,000 5-star reviews, we have worked hard to make ourselves one of the best gold companies in the country.

Don’t wait until potential turmoil upsets your hard-earned wealth before you do something about it. Call Goldco today to learn more about the many benefits of owning gold and silver.