Central Banks Are Hoarding Gold Like Doomsday Preppers. Should You Be Worried?

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Hey everyone,

Gold and silver just hit all-time highs.

Normally, this is where your finance-bro friend would say "you missed the boat, bro." Then he'd go back to explaining why his altcoin portfolio is "basically the same thing as real money."

But here's the thing: central banks—the people who literally print money—are buying gold at levels not seen since 1967.

That was right before the entire global monetary system collapsed.

Fun!

Let me break down what's happening, why it matters, and whether you should care about shiny rocks in a world of digital everything.

You know that uncle who keeps gold coins in a safe, doesn't trust banks, and forwards you YouTube videos about "the coming collapse"?

Turns out, central banks are basically him now. Except they're doing it with a thousand tons of gold per year.

Poland's central bank is buying. Brazil wants 30% of its reserves in gold. China's been quietly accumulating for years. Turkey, Czech Republic, Kazakhstan, Uzbekistan, Indonesia—everyone's suddenly really interested in this "barbarous relic."

Here's the list of countries panic-buying gold like it's toilet paper in March 2020:

When one government buys gold, it's a hedge. When everyone buys gold? That's a signal.

They're preparing for a world where the U.S. dollar isn't the only game in town. And considering the dollar's share of global reserves dropped from 65% in 2008 to... significantly less now... they might be onto something.

Remember when you left your stuff at an ex's place and then had to awkwardly ask for it back?

That's what's happening with gold right now—except the "stuff" is billions of dollars worth of metal, and the "ex" is the United States.

Germany brought its gold home. Turkey did too. Poland grabbed hundreds of tons. Sweden tried to get theirs back from the UK and got told "lol no."

(Sweden! The most non-threatening country in Europe! Even they got rejected!)

Why the sudden rush? Two words: Russia sanctions.

In 2022, the West froze $300 billion of Russia's reserves overnight. Every country watching thought the same thing: "Wait, they can just... do that?"

Turns out, when you keep your gold in someone else's vault, it's only yours until they decide otherwise. So now everyone wants their shiny rocks back where they can see them.

The BRICS nations—Brazil, Russia, India, China, South Africa, and their new friends—just launched something called "the Unit."

It's a digital trade currency backed 40% by physical gold and 60% by a basket of BRICS currencies.

It sounds impressive until you realize that 60% of it is backed by the Russian ruble, Chinese yuan, and Brazilian real—currencies that have, historically, performed like a crypto portfolio during a bear market.

But here's the thing: they're trying. BRICS is also building "BRICS Pay"—an alternative to SWIFT, the messaging system that lets banks talk to each other.

Why does this matter? Because the U.S. uses SWIFT like a weapon. Step out of line? Enjoy being unable to send or receive international payments.

Countries are basically building their own financial group chat because America keeps kicking people out of the main one.

Is it going to replace the dollar? Probably not tomorrow. But every chip away at the system is another crack in the foundation.

Okay, stay with me here. I know "banking regulations" sounds about as exciting as watching paint dry on a government form.

But Basel 3 is actually huge.

In 2019, international banking rules changed to classify gold as a "Tier 1 asset"—the same category as cash. Before this, banks had to treat gold like a risky speculation. Now they're literally incentivized to hold it.

Europe implemented it. Asia implemented it.

The U.S.? Delayed until 2028.

Why? Because implementing it now would apparently cause problems in the COMEX paper gold market. That's the market where people trade contracts that represent gold... that may or may not actually exist.

Current estimates suggest there are 100 to 200 ounces of "paper gold" for every one ounce of physical gold actually sitting in a vault.

It's like if 100 people had receipts for the same car. Everything's fine until everyone shows up at the dealership at the same time.

If gold is the respectable asset that central banks buy, silver is the one that retail investors and doomsday preppers argue about on Reddit.

Silver has a problem: it's actually useful.

Solar panels need it. Electric vehicles need it. AI chips need it. The solar industry alone accounts for 16% of global demand.

Industrial demand is exploding. But here's the kicker—there's a massive physical deficit. The paper price says one thing, but actual buyers in Asia are paying significantly higher premiums to get their hands on real silver.

London silver vaults are reportedly running low. Meanwhile, the price just... doesn't move as much as you'd expect.

Why? Because silver has historically been suppressed. It's the "warning system for regular people." Gold? That's for institutions and rich people. Silver is what the average person can actually afford. And apparently, keeping the average person calm is good for business.

Felix, the former investment banker from the video, suggests focusing on quality assets: real estate with good returns, stocks with pricing power, and physical gold and silver.

His take:

He's heavier on gold personally, but acknowledges silver could outperform in the short term.

The $37 trillion U.S. debt situation isn't going away. Central banks know this. That's why they're buying gold while telling you everything is fine.

What's happening:

What it means:

What to consider:

See you tomorrow,
Trade the Times

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