Gold’s Surge Bolsters Argentina’s Economic Recovery Under Milei

Argentina, long enamored with the US dollar as a shield against economic volatility, is witnessing a seismic shift as gold emerges as a preferred store of value. With gold prices soaring past $3,300 an ounce, up 27% in the past year, Argentines are flocking to bullion, bars, and exchange-traded funds, fueled by President Javier Milei’s reforms that have stabilized the peso and lifted currency controls.

This newfound love for gold, evident in bustling jewelry stores and bank vaults across Buenos Aires, signals growing confidence in Argentina’s economic recovery in 2025 while offering a hedge against lingering inflationary pressures.

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Gold as a Pillar of Economic Confidence

President Milei’s economic overhaul, including the removal of foreign exchange restrictions in late 2024, has transformed Argentina’s investment landscape. Argentines can now buy gold directly in pesos, with banks like Banco Piano offering interest-free installment plans and up to 30% cashback on purchases.

This accessibility has driven a surge in demand, with Banco Piano reporting a fivefold increase in gold imports from Switzerland in 2025 compared to 2024. “Gold is no longer just for the wealthy; it’s for anyone seeking stability,” said Leonardo Echegoyen, director at Banco Piano, which sells certified 999.9-purity gold.

The government’s recent proposal to raise the monthly gold purchase limit from $7,200 to $12,000 reflects this shift and encourages small savers to invest.

The peso’s unexpected strength, having increased by 10% against the dollar since January 2025, has made the greenback less appealing, while double-digit inflation, although lower than its peaks in 2023, continues to make investors cautious.

Gold’s global rally, driven by geopolitical tensions and anticipated interest rate cuts by major central banks, aligns with Argentina’s need for a reliable asset.

The World Gold Council reported a 170% year-over-year increase in net inflows to gold ETFs like SPDR Gold Shares (GLD) in Q1 2025, with Argentina contributing significantly to the 552-ton investment demand, the highest since early 2022.

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A New Era for Argentina’s Investors

Argentina’s historical distrust of its banking system, rooted in the 2001 crisis when dollar deposits were converted to pesos, has long driven savers to hoard cash in safe deposit boxes or unconventional hiding spots.

Now, gold is filling those boxes, with providers like Ingot reporting a 40% increase in gold storage demand in 2025. “Argentines are rethinking wealth preservation,” said Juan Piantoni, CEO of Ingot.

“Gold’s tangibility and global value make it a natural choice.” Unlike dollars, which have depreciated 7.5% against a basket of currencies this year, gold offers a hedge against both local and global uncertainties.

The trend extends to retail, with jewelers like Leiva Joyas seeing daily gold inquiries triple to 300 in 2025 and sales doubling from 2024. Priced at around $114 per gram with a 10-15% buy-sell spread, gold is marketed as a medium- to long-term investment, appealing to agriculture and finance sector professionals diversifying their portfolios.

Milei’s policies, including tax incentives for gold purchases, have further fueled this shift, positioning Argentina as a regional leader in retail gold investment. As the country navigates its economic recovery, gold’s rise reflects a cautious optimism, blending tradition with a forward-looking financial strategy.

Did you know?
Argentina’s gold purchases in 2025 have pushed its central bank’s gold reserves to their highest level since 2008, signaling a strategic shift toward hard assets.

Gold’s Role in Attracting Foreign Capital

The gold boom is reshaping domestic investment and drawing international attention to Argentina’s stabilizing economy. Foreign investors, particularly from gold-focused funds in the US and Europe, are eyeing Argentina’s liberalized markets in 2025. The country’s central bank has bolstered its gold reserves by 15% this year, signaling to global markets a commitment to hard assets.

This move has sparked interest from firms like BlackRock, which recently launched a Latin America-focused gold ETF that includes Argentine assets. “Argentina’s gold pivot is a sign of maturity in its financial system,” noted a BlackRock analyst in a June 2025 report.

By aligning with global trends, gold now accounts for 20% of central bank reserves worldwide. Per the European Central Bank, Argentina is positioning itself as an attractive destination for capital inflows, supporting Milei’s vision of economic reintegration.

Empowering a New Generation of Savers

Younger Argentines, particularly millennials and Gen Z, are driving a cultural shift in gold investment, facilitated by digital platforms and Milei’s reforms. Fintech startups like Aurum, launched in Buenos Aires in early 2025, allow users to buy fractional gold ounces via mobile apps, lowering the entry barrier for first-time investors.

These platforms have seen a 200% increase in user registrations since January, with many citing distrust in volatile cryptocurrencies and traditional banking. “Gold feels timeless yet modern,” said Sofia Mendez, a 28-year-old Aurum user.

Educational campaigns by jewelers and banks, combined with government-backed seminars on financial literacy in 2025, are further encouraging young savers to view gold as a cornerstone of long-term wealth. This generational embrace underscores gold’s role in sustaining Argentina’s economic momentum.