Gold is now the second most valuable reserve asset after the dollar. I don’t see appetite for gold going down among central banks. Every gold bar disowned by Russia will find a quick home. Silver making new decade highs. I don’t see demand slowing down for silver either.
Dollar cracked and Euro hit 1.15 today. Looks like the bull run has a clear path to 1.225.
All of the posturing by TACO, and the Chinese tariff rate now is 55%. Canada moving away from US defense industries towards Europe. The world is shifting, and as I said earlier shifting without the US.
U.S. Treasuries still sit at the top of the reserve asset pyramid, no question. But the real story—and the reason I’ve been stacking physical gold more aggressively the past two years—is that I’m simply echoing what EM central banks are doing. They’ve been underweight gold for decades compared to their Western counterparts and are now playing catch-up. China, India, Russia, Türkiye—these players are loading up on gold as a non-dollar, inflation-hedged reserve asset. They’re not waiting around for the next currency shock.
As for Canada’s latest flirtation with cutting defense ties with the U.S.—chalk that up to Carney’s globalist posturing. He wants to spread Canada’s puny budget across a dozen vanity projects, but in doing so, he may end up crippling a strategic industry. If the U.S. pulls the plug on Bombardier, Canada’s entire aerospace sector could get tossed in the bin. It’s one thing to virtue signal; it’s another to shoot your own industrial base in the foot.
I agree on stacking physical gold. Yes it makes sense those players stack gold to catch up with Western counterparts. If I was in a position to do so, I would stack gold myself. Silver will have to do the job.
Interesting point on Bombardier. It will be a fine balance to maintain Canadian military strength, depth and diversification. I believe Carney is up to the job. The results will be in the pudding.
Hi Stephen, what do you make of this news?
https://www.wsj.com/finance/commodities-futures/gold-surpasses-euro-as-second-largest-global-reserve-asset-ecb-says-5c2e5a51?ref=biztoc.com
Gold is now the second most valuable reserve asset after the dollar. I don’t see appetite for gold going down among central banks. Every gold bar disowned by Russia will find a quick home. Silver making new decade highs. I don’t see demand slowing down for silver either.
Dollar cracked and Euro hit 1.15 today. Looks like the bull run has a clear path to 1.225.
All of the posturing by TACO, and the Chinese tariff rate now is 55%. Canada moving away from US defense industries towards Europe. The world is shifting, and as I said earlier shifting without the US.
U.S. Treasuries still sit at the top of the reserve asset pyramid, no question. But the real story—and the reason I’ve been stacking physical gold more aggressively the past two years—is that I’m simply echoing what EM central banks are doing. They’ve been underweight gold for decades compared to their Western counterparts and are now playing catch-up. China, India, Russia, Türkiye—these players are loading up on gold as a non-dollar, inflation-hedged reserve asset. They’re not waiting around for the next currency shock.
As for Canada’s latest flirtation with cutting defense ties with the U.S.—chalk that up to Carney’s globalist posturing. He wants to spread Canada’s puny budget across a dozen vanity projects, but in doing so, he may end up crippling a strategic industry. If the U.S. pulls the plug on Bombardier, Canada’s entire aerospace sector could get tossed in the bin. It’s one thing to virtue signal; it’s another to shoot your own industrial base in the foot.
I agree on stacking physical gold. Yes it makes sense those players stack gold to catch up with Western counterparts. If I was in a position to do so, I would stack gold myself. Silver will have to do the job.
Interesting point on Bombardier. It will be a fine balance to maintain Canadian military strength, depth and diversification. I believe Carney is up to the job. The results will be in the pudding.