Dear Reader,
Happy Tuesday.
Today is Tuesday, January 27th.
And today, we need to talk about gold.
Because gold just crossed $5,000 an ounce — the highest price in history.
That's not a headline you can just shrug off.
Gold and the dollar are deeply connected, and what's happening right now is something we've been warning about for years.
Those of you who have been with us for a while may remember a report we published back in 2022 called The Death of the Dollar. In that report, I laid out a series of predictions that, frankly, are now playing out in real time.
First, I said China would continue dumping U.S. Treasuries and dollar-denominated assets. Since then, China alone has unloaded more than $100 billion — and other countries have followed suit, dumping hundreds of billions more.
Second, I said central banks would begin hoarding gold at levels we hadn't seen in decades. That's exactly what happened. Over the past two years, central banks have bought more gold than they did in the previous two decades combined.
And third, I said we'd eventually see a rival to the U.S. dollar — one at least partially backed by gold. Today, China and Russia have unveiled exactly that: a BRICS-linked currency unit that's roughly 60% sovereign currency and 40% gold-backed.
Now gold is sitting at $5,000 an ounce.
And Wall Street has quietly flipped its stance.
Morgan Stanley has moved from "sell gold" to raising its price target toward $6,000. Goldman Sachs recently bumped its target to $5,400.
So what changed?
There are five big forces driving this move — and the first one is the most important.
Institutions around the world are reducing dollar exposure.
According to Bloomberg, the U.S. dollar's share of global foreign currency reserves has fallen from roughly 65% to about 40%. That's the lowest level we've seen this century — and arguably since before Nixon closed the gold window.
That's a profound shift.
Gold is quietly replacing the dollar as a reserve asset.
And this is where most investors fall behind.
By the time this shift is obvious in the headlines, the opportunity is already gone.
Central banks may move slowly — but when they move, they move with SIZE.
And once money starts moving toward gold, it won't move back out easily...
That's why I put together an emergency report, "The Gold Cartel" — to explain everything that is happening right now, and how you could position yourself now, before the profit window closes. Make sure to check it out asap.
And I want to be very clear about this: I can't imagine anything more damaging to the long-term financial position of the United States than losing reserve currency status. It's an exorbitant privilege. It gives us lower borrowing costs, higher asset values, stronger retirement accounts — even if it comes with tradeoffs.
But we are watching that privilege erode.
If you look at the chart of global dollar reserves, the decline really begins around 2015–2016, during Trump's first term, when deficits ballooned. It continued through the Biden years. And now, as debt expands again, the trend is accelerating.
Markets are sending a message: confidence in U.S. fiscal discipline is weakening.
The Wall Street Journal recently laid out five reasons gold surged above $5,000.
The first is currency debasement — fear over the dollar's long-term strength.
The second is expectations for lower real interest rates.
The third is central bank buying — exactly what we highlighted back in 2022.
The fourth is stretched equity valuations.
And the fifth is momentum — plain old FOMO as capital rushes toward perceived safety.
And there's one more catalyst worth mentioning.
When the U.S. froze Russian dollar assets after the invasion of Ukraine, many countries quietly took note. The message was clear: if your reserves are held in dollars, they can be taken. That accelerated the move away from dollar assets and toward gold.
So here we are.
Gold at $5,000.
The dollar quietly losing ground.
Central banks repositioning.
And a global financial order that looks very different from the one we grew up with.
As the old saying goes: may you live in interesting times.
We are.
That creates opportunities for investors — but it also raises serious questions about the future our kids and grandkids will inherit if we don't get our fiscal house in order.
Anyway, that's what's on my mind today.
I'll see you tomorrow.
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