Dedollarization

We'll try to understand how a recession manifests itself and how long it takes to materialize. As a reminder, recessions are often beneficial for gold price growth.

Current history shows a decline in US monetary hegemony, marked by a series of de-dollarisation announcements and a reduction in dollar reserves in central banks, signalling a change in international trade, particularly in commodities such as oil.

As we near the end of a monetary era, key dominoes like political stability, currency, and debt will fall, causing social unrest, war, and economic collapse, with gold becoming a critical stable asset and its value significantly increasing.

Tavi Costa emphasizes the importance of identifying macroeconomic trends, particularly the growing shift towards hard assets like gold amidst global inflationary pressures and geopolitical changes. He points out the rising demand for commodities like copper and the underinvestment in precious metals...

For over half a century, the United States has surpassed the United Kingdom as the leading international power. Its military and monetary strength, the first two of a hegemonic country, remain unrivalled. The Biden administration seeks to maintain this superpower, but the world is changing.

US markets hit new highs thanks to the rise of technology stocks, notably NVIDIA, while European households prefer bank savings. At the same time, China and other BRICS countries are increasing their gold reserves, moving away from the dollar.

India's central bank has moved around 100 tonnes of gold from the UK to its domestic vaults, with plans to repatriate more soon, according to a TOI report. This significant transfer, the first since 1991, addresses logistical and storage diversity concerns.

The New Gold Playbook reflects changing market dynamics driven by central bank actions, geopolitics, and the rising importance of noninflationary assets like gold and Bitcoin.

Since the October 2023 gold low of just over $1,600 gold is up but is anyone buying? Well no, certainly none of the normal players. Gold Depositories, Gold Funds and Gold ETFs have lost just under 1,400 tonnes of their gold holdings in the last 2 years since May 2022.

China is trying to slow down the gold-buying craze, while economic pressures in Japan and the United States keep gold as an attractive asset despite high stock market valuations.