Tectonic Shift Vaults Gold Into Historic Ground

When Russian President Vladimir Putin and Chinese President Xi Jinping stepped to their podiums earlier this week, they signaled the end of the United States hegemony on the world stage. While the wheels have been in motion for many years with the formation of the BRICS alliance and exchange agreements bypassing the US Dollar, this new formal alliance and announcement shook the world and markets to their core. Upon firing the first salvos in the economic war against the West, this new formal alliance cements the future change of the Global Economic Landscape.

China has now cornered the world petroleum market which they desperately need with agreements with Iran, Saudi Arabia, and now Russia. Putin finally has a buyer for his petroleum products he needs to finance and finish what he started in Ukraine and whatever aspirations may be on his horizon. This historic agreement with China no doubt increased his stock with dissenting Oligarchs insuring his power indefinitely.  

If you felt a shudder following the three-day meeting, that was just the foreshock of bigger shifts to come. When hegemonies have lost their grip on the globe in history, the end is not marked by a day or a month. It happens methodically over perhaps a decade or two. With the distractions all around us, many Americans are unaware that we are some years into the decline of the American Empire. This week’s accords were just the opening remarks from the eulogists. The BRICS alliance is taking the first step to creating a parallel economy using the Yuan as its unit of exchange. Both China and Russia have been, sometimes quietly, and sometimes not, amassing stockpiles of gold. China specifically has a history of not reporting their gold holdings until enough is accumulated to make a bold international statement. There is wide speculation that a new currency will emerge from this alliance which will be backed by some fractional amount of gold. A very concerning event for fiat currencies everywhere.

Gold Price

Based on the announcement, it would appear that the actors consider the momentum too strong to be stopped. Surely a competing currency will have some consequences for the Greenback.  o be fair, the Petro Dollar is dead already. This single act three decades ago was a contributing factor to the First Gulf War. Saddam Hussein had begun making arrangements to bypass the Petro Dollar for his crude production. Today, the United States sits idly by as the same has been occurring for a couple of years now. Certainly, other sovereign nations will feel obliged to reduce the number of their US Dollar reserves in favor of a fledgling reserve currency as parallel economies emerge. When these US Dollars are repatriated, they must be digested into the already teetering economy back home. An increasing number of dollars translates into an increasing amount of inflation. Gold will be the benefactor of such a migration as it pays dividends to those who own it.  

The landscape of the Physical Precious Metals Universe has changed dramatically overnight. It is imperative that investors realize that $2,000.00 is a bargain with all of the events that are unfolding right before our very eyes. Wholesale level distributors of Bullion Products such as bars, coins, and rounds are taxed to fulfill orders to the retail sector.  Numismatic products are experiencing their biggest demand in nearly two decades as the benefits of a secondary value to Gold or Silver intrinsic value comes more into light.  Alternative Investors are flocking to Artwork, Antique Cars, and Rare Wines as the shift to tangible assets is in vogue in wealthy circles.

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