In a recent episode of War Room, Steve Bannon sat down with Phillip Patrick, a precious metals expert from Birch Gold Group, to delve into the intriguing trend of banks amplifying their gold reserves at the expense of the US dollar.
“Let’s kick things off with a fundamental question that’s been on everyone’s mind,” Bannon opened. “How did we transition from gold prices treading water at around $1,100 a couple of years back to soaring past $3,800? What insights are the leading financiers spotting that fuel this surge, at times mimicking stock-like swings? Can you break that down for us?”
“This is not an overnight phenomenon. The trajectory we’ve observed since 2008 and especially during the pandemic has been extraordinary, but the seeds were sown at the beginning of the century,” Patrick responded.
Patrick traced the uptrend in gold investments directly back to significant increases in the money supply initiated in the early 2000s as a protective measure against inflation.
<p“What’s fascinating is the shift that commenced at the turn of the century, when we began massively expanding the money supply,” he explained.
“There’s an undeniable relationship between national debt, money supply, and the surge in gold prices,” he continued.
“Look at the Biden administration’s actions: they injected eight trillion dollars into the markets over four years. It’s hardly shocking that gold prices are responding accordingly,” Patrick noted, making a direct connection between government policy and market shifts.
He elaborated that gold is increasingly displacing the Euro and US government debt as a preferred reserve asset among central banks. Many are now keen on significantly boosting their gold allocations over those in US dollars.
“Gold is steadily emerging as a favored central bank reserve asset. As I’ve pointed out before, it surpassed the Euro last year and now constitutes a larger slice of global reserves than US government debt,” Patrick asserted.
“This trend is critical, as gold is increasingly serving as a substitute for various fiat currencies. It’s essential for individuals to grasp this shift for their financial futures,” Bannon interjected.
<p“Central banks are indeed viewing gold as a sort of reserve currency, wouldn’t you agree?” he pressed Patrick.
“Absolutely, the data speaks for itself: 73 percent of surveyed central banks indicated intentions to significantly boost their gold stocks while scaling back their US dollar holdings over the next five years,” Patrick affirmed.
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