I've spent two decades tracking the forces that move gold... |
For 20 years I've lived inside the data, the cycles, the macro shifts... |
And what's happening right now between Saudi Arabia and the Chinese is a turning point that will move the price of gold in a way we haven't seen in generations. |
Because the Saudis have quietly walked away from a pact it struck with the U.S. in 1974... |
A pact that quietly ran the global financial system for the past half-century. |
The arrangement was simple: Saudi Arabia would price its oil only in U.S. dollars — which meant every nation on the planet had to stockpile U.S. Treasuries just to buy energy. |
That single agreement is the bedrock American financial supremacy has rested on for fifty years. |
And now, it's gone. |
The mainstream press barely covered the unwinding of this deal... |
And in the beginning, the surface looked calm. |
But the cracks are now impossible to ignore... |
Saudi Arabia inked a $7 billion currency swap with Beijing… Started clearing oil transactions in digital yuan… And plugged itself into mBridge, China's cross-border settlement network. |
Conflict with Iran is pushing Gulf states toward yuan-denominated oil contracts... |
And vessels moving through the Strait of Hormuz are now paying tolls in yuan, in crypto, in anything other than the greenback... |
On both shores of the Persian Gulf, the dollar's grip is loosening... and something else is taking its place. |
The collapse of this enormous, built-in global demand for dollars will rewrite how money works. |
Because if crude no longer requires dollars, then the world has no reason to warehouse U.S. currency. |
And when dollar demand softens… Treasury demand softens right alongside it. |
Ten-year yields are already creeping toward 4.4% — the level where the machinery starts to seize up. |
Weaker Treasury demand → climbing yields → Fed steps in → the printers fire up → and the dollars in your account quietly lose their muscle. |
That's the chain reaction unfolding in front of us. |
As the dollar weakens and foreign buyers walk away from American debt, gold has nowhere to go but up. |
A sinking dollar is the most powerful tailwind gold has ever known. |
But the smartest way to position for the dollar's decline isn't to load up on bullion… |
There's a different vehicle for capturing gold's next leg higher... |
An asset that's still priced at a dramatic discount to where gold itself is trading today. |
It's gold exposure at a fraction of the cost... |
Click here to see how it works. |
Best, |
Garrett Goggin, CFA, CMT
Chief Analyst and Founder, Golden Portfolio |
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