 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 . |
