It looks like the U.S. might be gearing up for another gold rush. Citadel’s Ken Griffin warned that investors are starting to consider gold as a safer asset than the dollar, calling the trend “really concerning.”
“We’re seeing substantial asset inflation away from the dollar as people look to de-dollarize or de-risk their portfolios against U.S. sovereign risk,” Griffin said in a Monday interview with Bloomberg.
Gold surpassed the $3,900-an-ounce level for the first time on Monday, helped by safe-haven demand following a drop in the yen, uncertainty from the ongoing federal government shutdown, expectations of potential rate cuts, and broader concerns about inflation and dollar weakness.
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“The U.S. is experiencing fiscal and monetary stimulus more typical of a recession, which is stoking markets,” Griffin added. “We’re definitely on a bit of a sugar high in the U.S. economy right now.”
In the interview, Griffin also downplayed the impact of the $100,000 cost to keep employees on H-1B visas for his company. “Fortunately, in our sector, a $100,000 one-time cost to hire someone isn’t make-or-break,” he said. “I worry far more about brilliant students in India who don’t come to America, or gifted math and physics students who stay in China.”
This year, investors have flocked to gold, silver and Bitcoin in what’s been dubbed the “debasement trade.”
Citadel Securities is a leading global market maker and financial services firm founded in 2002 by billionaire Ken Griffin. It plays a crucial role in financial markets by providing liquidity, facilitating the efficient trading of stocks, options, and other securities across major exchanges worldwide. Known for its advanced technology and quantitative trading strategies, Citadel Securities executes millions of trades daily, helping reduce spreads and improve market quality for investors.
The firm operates independently from Citadel, the hedge fund also founded by Griffin, though both share leadership. Citadel Securities is a dominant player in retail and institutional order flow, partnering with major brokerages and trading platforms. It has been influential in shaping modern electronic trading and market structure, especially in the U.S. equity markets.
Despite its success, Citadel Securities faces scrutiny over market fairness and transparency, particularly regarding payment for order flow and its influence on market dynamics. Nonetheless, it remains one of the most powerful and innovative firms in global financial markets as of 2025.
Griffin’s warnings highlight a significant trend: a search for safer assets amid fears of inflation, fiscal stimulus, and potential dollar weakness. This reflects a lack of confidence in traditional fiat currencies, prompting diversification into precious metals and cryptocurrencies as hedges against risk.
This year, investors have flocked to gold, silver and Bitcoin in what’s been dubbed the “debasement trade.”
For firms like Citadel Securities, this environment presents both challenges and opportunities. While market volatility can increase trading activity and liquidity demands, it also raises questions about long-term market stability and regulatory scrutiny. The emphasis on de-risking portfolios suggests investors are preparing for uncertain economic conditions ahead, influencing market dynamics and asset flows.