"Gold Is Now The World's Reserve Currency" — Nassim Taleb

Jun 17, 2025

The U.S. dollar may still be a good pricing mechanism and medium of exchange, but gold has already become the de facto world reserve currency, and the Trump administration's tariff and immigration policies are "like trying to wreck the boat voluntarily," according to Nassim Taleb, author of "The Black Swan" and scientific advisor at Universa Investments.

Taleb was asked about the markets' reaction to the worsening U.S. government debt situation and whether the markets are pricing in risk in that area.

Beyond the steady erosion of the value of the U.S. dollar, which Taleb said is ultimately reflected in U.S. equities, he sees another major problem on the horizon.

"There's a second risk," he said. "The first one is the deficit. The second one is effectively that the dollar is losing its status as a reserve currency."

"You can see the accumulation of gold in the [central bank] reserves, and the behavior of gold over the past 12 months," Taleb replied. "And it didn't start with Trump's policies, of course. It started with Biden when he froze the accounts of people connected to Putin, thinking that it'd be limited there, but people not connected to Putin decided to stay away from the euro and the dollar."

"Gold is effectively now the reserve currency," he said. "Transactions take place in dollars, euros, usually dollars, and at the same rate; however, they get converted back into gold. And we can see it from the accumulation of reserves."

"The dollar is a good transactional currency because people can label things in it, but not necessarily a storage currency," Taleb said. "This is what we're facing now."

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

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The Dollar's Crown Is Slipping, And Fast

Thu, June 12, 2025

LONDON (Reuters) -The dollar has sunk to its lowest in three years as rapidly changing U.S. trade policy unsettles markets and expectations build for Federal Reserve rate cuts, fueling outflows from the world's biggest economy.

With the dollar down almost 10% against a basket of major currencies this year, other countries around the globe are grappling with unanticipated FX moves that are having a knock-on impact on economic growth and inflation.

"There's clearly solid dollar selling," said Kit Juckes, chief FX strategist at Societe Generale.

The euro, Swiss franc and Japanese yen are also among the biggest beneficiaries of the dollar's fall from grace, up roughly 10% each so far this year.

For years, Asian investors parked trillions of dollars in U.S. assets such as Treasuries. U.S. President Donald Trump's April 2 "Liberation Day" fired the starting gun for that capital to start flowing back to the world's manufacturing powerhouses, boosting their currencies.

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.

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Bank of America: Gold's Path To $4,000

Jun 16, 2025

Gold prices have fallen back below $3,400 an ounce as the conflict between Israel and Iran has not seen regional escalation. But while the precious metal continues its broader consolidation, commodity analysts at Bank of America say it still has a path to $4,000 an ounce.

In its latest report, the bank's precious metals team, led by Michael Widmer stated that gold retains significant upside potential as investment demand has only just begun to grow.

Rather than focusing on specific geopolitical events, Bank of America analysts are monitoring the broader economic landscape and gold's growing appeal as an important global monetary asset.

This comes as U.S. government debt continues to grow at an unsustainable pace. Bank of America noted that gold is attracting new interest as Congress debates a new spending bill that aims to cut taxes... which is expected to increase the deficit by trillions of dollars.

"Market concerns over fiscal sustainability are unlikely to fade, regardless of the outcome of Senate negotiations," the analysts said. "Rates volatility and a weaker USD should then keep gold supported, especially if the U.S. Treasury or the Fed is ultimately forced to step in and support markets. As such, while wars and conflicts are usually not sustained price drivers, we see a path for gold to rally to $4,000/oz over the next 12 months."

A final supportive factor for gold is the broadening rally in the precious metals sector, as silver and platinum have attracted new bullish momentum.

"Although silver had gone through a period of underperformance, the market has remained in deficit, mainly due to constrained mine supply. Hence, market participants have long anticipated a normalization in the gold-to-silver ratio, which has finally occurred, accompanied by an increase in assets under management at physically backed ETFs," the analysts said. "We had a price objective of $40/oz for Q4 2025, so that rally arrived a bit earlier than we had anticipated, but we're sticking with our forecast. If trade disputes normalize and global growth accelerates, silver should take another leg higher."

** Information contained within this email should not be construed as Legal, Accounting, Tax or Investment advice. Patriot Gold Group is a Gold & Silver Dealer, representatives are NOT Licensed Financial Planners and do NOT give investing or tax advice.