$4,000 Gold and A Seismic Shift! -

Gold has exploded above $4,000 an ounce, but that might not be the biggest news about the precious metal this week. 
In what could be a seismic shift, Morgan Stanley has shaken up the traditional investment paradigm by ditching the conventional 60/40 portfolio and recommending a strategy that includes a 20 percent allocation to gold.
In this episode of the Money Metals Midweek Memo, host Mike Maharrey explains the ramifications of this shift, along with the reasons behind it. Along the way, he covers some of the dynamics behind this gold bull run and what it reveals about financial markets, money, and the economy.
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Mike opened the show talking about the "prevent defense" in football. 
<blockquote>
"If you are a football fan, you’ve experienced the frustration of the prevent defense. You know, your team has a big lead and goes into this shell where instead of being aggressive, they sit back and just try to prevent the big play. This is kind of conventional wisdom in football. The thinking is that it’s OK to give up yards as long as you keep the other team from scoring because they’ll just run out of time. Great theory. Seems like it never works. In fact, there's an adage that says 'the prevent defense prevents you from winning.' And yet, coaches do it virtually every time."
</blockquote>
Mike then drew an analogy.
<blockquote>
"There is an investment world equivalent of the prevent defense. It’s the 60/40 portfolio. But there was recently a crack in that mainstream narrative."
</blockquote>
Before delving deeper into this development, Mike noted that gold hit another big milestone overnight.
<blockquote>
"So, I kind of buried the lead. Gold has blasted through the $4,000 level. It was flirting with it yesterday, and futures broke through during the day. But I was pretty surprised when I looked a bit ago, and gold was at $4,053. It’s pretty wild. I expected gold to break $4,000 – next year. The speed of this rally is staggering."
</blockquote>
Mike admitted that he's a little worried that the rally will unwind.
<blockquote>
"Not because there is any fundamental reason to think so. There isn't. It’s just that I’m kind of like the whipped puppy. The sentiment around gold and silver is always so negative. Even over the last 18 months with gold rallying, the mainstream sentiment has kind of been ho-hum. It was kind of funny – funny sad, not funny haha. Even as gold was flirting with a significant milestone, CNBC managed to find the downside. They published an article about how high gold prices are squeezing jewelry makers. I reshared it on X and said, Leave it to CNBC to put a negative spin on record gold prices. There’s a saying that bull markets tend to climb a wall of worry. It’s especially true with precious metals because the mainstream doesn’t like them to begin with."
</blockquote>
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Mike said it wouldn't be shocking to see a big price correction, especially once the government shutdown resolves. But that doesn't mean the bull market is over. The dynamics that have driven gold higher over the last several months remain in place.
<blockquote>
"While gold might be oversold from a technical standpoint, it is not over-owned. In fact, it is under-owned. According to a World Gold Council survey, only about 38 percent of investors hold gold. That seems kind of shocking, given that gold has been one of the best-performing assets out there, especially over the last few years."
</blockquote>
Mike said it's not too late to get gold, especially if you are looking to preserve your wealth. But he acknowledges that the high price makes accumulating gold and silver difficult. He suggests <a href="https://www.moneymetals.com/programs/monthly-program" rel="noreferrer">Money Metals' monthly purchase program</a> as a way to build a precious metals portfolio over time. You can buy gold and silver for as little as $100 per month.
Mike said it's not shocking that U.S. investors don't own a lot of gold, given that most financial advisors don't recommend it.
<blockquote>
"If you ask me, this is fiduciary malpractice given gold’s performance. But brokers don’t make money selling gold. They make money selling stocks and bonds. So, it really isn’t shocking that gold doesn’t get a lot of love. But as I alluded to at the beginning of the show, that might be about to shift. Morgan Stanley CIO Michael Wilson recently came out with an investment strategy that includes a 20 percent allocation to gold."
</blockquote>
Historically, the conventional wisdom on Wall Street was a 60/40 portfolio, with 60 percent of the holdings in equities and 40 percent in fixed-income investments, primarily bonds. The theory is that these asset classes balance each other, with stocks strengthening in a strong economy and bonds creating a hedge during downturns. But Wilson suggested investors should now consider a 60-20-20 strategy that includes a 20 percent allocation to gold. 
Mike called this shift "seismic."
<blockquote>
"This could lead the way to a broader institutional shift in strategy."
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And that could mean more people owning more gold!
<blockquote>
"It will be interesting to see if other mainstream advisors follow suit. But whether they do or not, you should consider rebalancing your portfolio to include gold if you haven't already. The policies and economic dynamics driving this gold rally aren't going away any time soon. This monetary malfeasance can't be voted away. The best thing you can do is prepare and shield yourself from the inevitable consequences."
</blockquote>
Mike pointed out that the big runup in the price of gold is all about money and the breakdown of the fiat system. And it's not just about the dollar. 
<blockquote>
"Gold is the only money that is actually holding its value. Governments all over the world are devaluing their money, while gold, real money, holds up. I read the other day that silver is already at record levels in rupee terms. ZeroHedge posted a chart showing gold and silver’s gains and titled it, 'The death of fiat money.'"
</blockquote>
So, what can you do? Because this isn’t something you can just vote away. 
Mike suggests getting real money — gold and silver. Call 800-800-1865 and talk to a Money Metals' precious metals specialist today!
<h2>Articles Mentioned in the Show</h2>
<a href="https://www.moneymetals.com/news/2025/10/06/central-bank-gold-buying-rebounded-in-august-004386" rel="noreferrer">Central Bank Gold Buying Rebounded in August</a>
<a href="https://www.moneymetals.com/news/2025/10/02/gold-still-underowned-despite-surge-in-investment-demand-004377" rel="noreferrer">Gold Still Underowned Despite Surge in Investment Demand</a>
<a href="https://www.moneymetals.com/news/2025/10/02/gold-its-not-just-for-the-government-shutdown-004376" rel="noreferrer">Gold: It's Not Just for the Government Shutdown</a>
<a href="https://www.moneymetals.com/news/2025/09/30/inflation-the-dow-is-down-36-percent-in-gold-terms-since-1929-004372" rel="noreferrer">Inflation: The Dow Is Down 36 Percent in Gold Terms Since 1929</a>
<a href="https://www.moneymetals.com/programs/monthly-program" rel="noreferrer">Money Metals' monthly purchase program</a>

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