The rates were held at those levels for too long. A cleansing of sorts has to occur before the economy can build any momentum that reflects real and lasting growth.
The euro’s share of global reserves fell 2023 to 2024, from 16.5 to 15.9%. Gold’s share leapt from 18.1 to 19.6%. Dollars held tumbled from 48.4 to 46.5%.
Separating the signal from the noise may be the hardest challenge investors face. We’re all surrounded by constantly changing but mostly unimportant information.
When investors buy gold, they aren’t hoping it’ll go up, instead they are acknowledging that something else is going down. So gold moves. Quietly and steadily. Like a compass needle returning to true north.
Truth be told, the United States has reneged on its financial obligations, and its defaults always reveal its paper currency and broken promises aren’t as sound and trustworthy as silver and gold.
The institutions that built the fiat system are quietly hedging against it. The West refuses to follow. Gold is having a very good year, even in a world where inflation is falling and diplomacy is supposedly improving.
The wrong people have control of all the data and all the power. They’re not good people, and they won’t use all this data, money, and power in benevolent ways.
