economy
January 24, 2026
The monetary system is broken and gold knows why
Central banks are loading up on bullion because holding dollars has become a losing proposition
TL;DR
- Gold prices have risen dramatically, from $1,000/oz to over $4,800/oz in a decade, with a nearly 70% increase in 2025 alone.
- This price surge is seen as a sign of deep issues within the current monetary system, particularly the debasement of the U.S. dollar.
- Central banks are identified as the primary drivers of gold's price increase, accumulating the metal in large volumes, often through opaque channels.
- China, India, Türkiye, Brazil, and Poland are noted as significant buyers of gold, with 95% of central banks expecting to increase gold reserves.
- The U.S. dollar's role as a reserve asset is diminishing, particularly in the 'reserves/stores of value' circle, despite its continued dominance in trade and credit.
- The debasement of the dollar is attributed to excessive U.S. debt and deficits, forcing negative real interest rates to manage the debt burden.
- The U.S. establishment, including the Federal Reserve and Treasury Secretary Scott Bessent, is accused of downplaying the significance of gold's rise and the dollar's declining status.
- The article suggests that gold is returning to a central role in the global financial system, facilitated by a quiet, patient restructuring led by non-Western nations.
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