The Chinese leader told his people to hold gold. The people responded. Demand skyrocketed.
Now, the directive has shifted: Get USD off the books. The banks will respond. We aren't just talking about a policy change. We are talking about a fundamental shift in the global monetary order. Why does this matter? Liquidity is shifting: When the world's second-largest economy pivots away from the Dollar, the ripples hit every portfolio. Gold is the anchor: Central banks are returning to "real" assets as a hedge against geopolitical volatility. The Signal: When a superpower tells its financial institutions to de-risk from a specific currency, the "quiet part" is being said out loud. The world is de-dollarizing faster than most people realize. Source: Blomberg, Steno Research
Most recently, $BTC bitcoin hasn’t been behaving like the end-game hedge… far from it.
Since Japanese rates started ripping higher last autumn, gold and BTC have moved in almost perfect opposition. Source. TME, LSEG
Current gold bull market in historical perspective
Source: Willem Middelkoop @wmiddelkoop Canaccord Genuity Bloomberg
30-day realized vol in gold has climbed above 44%, the highest level since the 2008 financial crisis, according to data compiled by Bloomberg.
That surpasses the roughly 39% for Bitcoin, the original cryptocurrency often dubbed “digital gold.” Since Bitcoin’s creation 17 years ago, gold has only been more volatile on two occasions, most recently last May during a flare-up in trade tensions sparked by President Trump's tariff threats. Source: Bloomberg, www.zerohedge.com
THIRD WAVE OF THE US DOLLAR CYCLE
Interesting comment by Crescat Capital: ‘We think the gold panic on Friday on the announcement of Kevin Warsh as the new Fed Chair caused a healthy pullback from short-term overbought conditions in the precious metals markets. While Warsh may appear the least dovish among President Trump’s candidates, we believe he is indeed in favor of lowering interest rates in 2026, as the President has also affirmed. Investors in Crescat’s portfolio of undervalued precious and critical metals miners should not be too concerned. Our activist mining portfolio outperformed gold, silver, and the gold equity benchmarks, both on Friday and cumulatively for the month of January. Still, the gold correction was no small matter. We think it presents a buying opportunity. In fact, now, as much as ever, is the time for gold investors not to panic but to step back and look at the big picture’. Source: Crescat Capital
No bounce... pickup up where we left off on Friday.
*SPOT GOLD FALLS 5%, ADDING TO BIGGEST PLUNGE IN OVER A DECADE (Down 18% from Thursday's high) Source: Jim Bianco
In Germany, the value of the country’s gold reserves has climbed to €496bn.
Germany holds 3,352 tonnes of gold through the Bundesbank. More than 1,200 tonnes are stored in New York, with the rest held in Frankfurt and London. Source: HolgerZ, Bloomberg
Did the BTC/Gold ratio just find support?
Source: www.zerohedge.com
