Gold Front and Center!
Experts note changing global monetary role
It’s one of those headlines that sums everything up in a few lines. This is from the Financial Times on 6/17/25:
We are certainly glad to see some of the international news media catching on. Our only interest is seeing to it that our friends and clients get in early before everyone awakens at once and the price of gold races to the stratosphere.
The Financial Times news report details exactly what we have been describing in these blog posts: Central banks expect to keep on buying more gold, according to a survey of officials. They expect the value of the dollar to continue to fall over the next five years.
All of that is completely foreseeable. Central banks hold currency reserves for a number of reasons, including issuing their own currencies against the value of reserves that they hold. There is little point in holding reserves in an asset of declining value. Anyone who remembers the Biden administration should remember suffering the highest monetary inflation in more than forty years, inflation that touched double-digit rates in some venues and for some products. That means the dollar was losing purchasing power fast. And the world’s central banks know it.
Watching America’s ballooning debts, they want to be prepared for more of the same.
Here are a couple of key bullet points from the Financial Times report:
- Gold prices have surged 30 per cent since January and doubled in the past two years.
- Gold has now bypassed the euro to become the world’s second-largest reserve asset, behind only the US dollar.
- A record 95 per cent of respondents to a World Gold Council survey expect global central banks’ gold holdings to increase over the next 12 months, the highest level since the annual poll started in 2018.
- Meanwhile three-quarters of respondents expect central banks’ US dollar holdings to decline over the next five years.
It is notable as well that central banks continue to repatriate their gold rather than relying on foreign depositories like the Federal Reserve and the Bank of England for safekeeping. This reflects distrust in the management of the largest monetary institutions. We believe that distrust is justified.
As gold and silver authorities of long standing and with thousands of clients, our interest coincides with yours. We believe you should take prudent steps to protect your family and your wealth with gold and silver. As we’ve said, we hope to be able to help you before the global stampede to hard money breaks out. Rather, we think you should do so now and leave the rest of the world to chase prices later.