Gold Replaces U.S. Treasuries as Major Reserve Asset. Move Over Fiat Trash.

追加: 2026-06-04

[00:00:00]I I think uh yeah the pointlessness of listening uh to uh the FT and central bankers and uh mainstream economist that's what's continued to sink in now I would say Wednesday June 3rd 2026 Manco 64 home of alternative economics and contrarian views well it it's a big day of vindication ation for the yellow metal for gold because 22 years after uh this FT editorial here said that gold was finished that it was a useless uh relic that uh it was like uh redundant.

[00:00:48]Uh the FT has reported as of yesterday that gold has replaced US treasuries as the world's top reserve asset. Yes. Uh that's big news. And uh if you wanted another signal that you need to have gold, uh this is it. And uh we're going to look at this article today. And I also want to talk about cartels and monopolies because that's all central banks are. and I saw uh an article uh about the Fed and WS what he's trying to do at the Fed and uh I think it's all like academic because ultimately the free market should set the price of uh credit. uh it shouldn't be a group of uh 12 men and women in a committee meeting every six weeks and uh trying to manage the market. Uh it's just like a OPEC. O OPEC is a cartel. Central banks are monopoly. And we're going to look at that as well. But first, let's go to this uh article that came out yesterday.

[00:02:09]It says gold replaces US treasuries as world's top reserve asset. ECB says historic uh bullion rally boosts metals share uh of reserves to 27% while central banks diversify away from the dollar. Of course, the dollar is not money. The the fiat dollar is just a a debt instrument. you cannot extinguish that or pay anything uh with that. There in lies the whole problem with our fiat currency system. Uh before uh we go into this article, I just wanted to let you know and I haven't publicized them uh of late that much, but I I think it's uh the best time to acquire gold and silver right now when sentiment is really bearish.

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[00:04:19]Back to the article.

[00:04:21]Gold has overtaken US government bonds as the world's top reserve asset, following years of relentless buying by central banks in the historic rally that has seen prices nearly double over the past two years.

[00:04:36]Bullion accounted for 27% of all global central bank reserve assets at the end of 2025 up from 20% a year earlier according to a report published on Tuesday by the European Central Bank. Uh US treasuries fell to 22% from 25% over the same period.

[00:05:02]Yeah, some people are going to say, "Oh, uh, this has happened just because the price went up." But as you're going to see here, uh, central banks have been, uh, buying gold at a record pace since 2022. So, let's continue. Uh, the share of euro denominated reserve assets was unchanged at 15%. So it's interesting that the dollar went to 20 from 27 to 22 and the euro stayed at 15. So so much for the euro collapsing. Anyway, uh the shifting composition of reserve assets, highly liquid holdings uh that central uh banks use to support their currencies meet international payment obligation and provide liquidity in times of financial turmoil reflects an attempt by many countries to seek alternatives to the US dollar, the world's de facto reserve currency. Well, the US dollar is a debt instrument, as I said, the fiat dollar. And I emphasize that because the term dollar is a weight of silver and gold, but in this case, it's a it's a debt instrument. So, there's counterparty risk with gold.

[00:06:16]Physical gold in in the central bank's vault or in your vault uh is no one else's liability. It's payment. It's money.

[00:06:29]Uh those efforts have accelerated since 2022 when Washington used sanctions to freeze Russia's dollar reserves over the full-scale invasion of Ukraine.

[00:06:42]Geopolitical tensions continue to drive strong central bank demand for gold, wrote ECB President Christine Lagarde in Tuesday's report. Well, she's woken up Christine Lagarde. uh it's taken a while but I can understand because she's a lawyer by training not she's not really a banker or she's doesn't know much about markets I would say with more than 36,000 tons of gold the world's central banks are hoarding almost as much gold as during the peak of the Brettonwoods era according to the ECB when the US dollar was pegged to bullion on foreign exchange and foreign exchange rates to other currencies are fixed. Central banks had 30 held 38,000 tons of gold.

[00:07:34]So uh when you look at uh what the world uh situation is now in terms of uh debt uh assets like uh trade GDP that 36,000 is very low compared to 38,000 during the Bretonwood system. And that system uh didn't I mean India, China and a lot of countries were like still very undeveloped but gold surged past US treasuries.

[00:08:09]Traditionally the bedrock well the foundation of sand I would say it's not a bedrock of international dollar reserve holdings is also the result of its spectacular price gains in recent years. The metal hit a high of more than five $5,500 a troy ounce in January.

[00:08:28]Well, I I would say one of the reasons why it's going up, it's because central banks want more of the stuff. They want the real thing. They don't want the futures. Uh they don't want paper.

[00:08:41]Dollar denominated asset as a whole still make up the biggest chunk of reserves at 42%. The ECB data showed central bank's gold purchases slowed slightly to 850 tons in 2025 after 3 years of net purchases of more than a,000 tons per year. The biggest accumulators of gold ever uh reserves since 2022 were China, Poland, Turkey, and India, the report showed. So here's the chart. It's still I mean last year was lower but compared to the previous years like prior to 2022 uh still almost double and I would argue that a lot of these uh central banks they're not telling the w gold council or or the public exactly how much they're buying.

[00:09:34]So I think this is underestimated.

[00:09:38]Uh it goes on to say that uh uh Tether is buying gold as well that uh they bought uh a 100 tons in 2025. Some people like Andy Sheckchman think that Tether, USA Tether is dealing as a proxy for the US government. So you might want to add a 100 tons to that 850 tons and we come almost up to a,000 tons. So, I'm going to stop right here and uh yes, vindication for for gold. And uh many of you know about this editorial that I uh well, I cut out from the FT back in 2004 and laminated it and it said, "Going, going gold. The pointlessness of holding bullion continues to sink in." And at the time, uh gold was at $400 an ounce.

[00:10:33]That was April 16th. Uh I I think uh yeah, the pointlessness of listening uh to uh the FT and central bankers and uh mainstream economists, that's what's continuing to sink in now, I would say.

[00:10:53]And with that, I wanted to talk about Yeah. the the pointlessness of really listening uh to central bankers and what they have to say about the economy, about interest rates, and how they're clueless really. And and I say that because it they're clueless because they don't realize that they're hubris to think that they can control uh a market uh like credit which is the most important market in a free market. Uh, and I'm saying this because there's an article in the FT as well from a few hours ago um saying Kevin Worsh uh set to revamp Federal Reserve signaling to Wall Street. Former top official officials say central bank chair chairman is keen to roll back forward guidance on rates.

[00:11:51]So they're going on uh in this article.

[00:11:54]I don't have to go through it with you.

[00:11:56]All about the communications, how they try to like uh prepare the markets, uh how they try to forecast things to say where rates are going to be. Um and I think it's a useless exercise. And why? Well, because in the free market, the market uh interaction between uh hundreds of thousands of millions of people or even billions of people borrowing and lending, buying and selling that determines the price for everything. Uh central banks and governments and uh cartels are a waste of time. they disrupt markets and uh they never work. So yeah, it was interesting that at the end this guy here uh Reinhardt and I think he's a former Fed guy. He works for U BNY Investments or maybe he wasn't a Fed guy, but he said the whole communications enterprise is a giant edifice and and he's going to chip away at it. The Fed doesn't turn that quickly. Well, it's a giant edifice of propaganda and uh yes, that's all it is because as I said the the hubris is enormous to think that you can influence markets and that you can control interest rates. Uh so I would say the BIS really is the head of the snake.

[00:13:34]It it's like OPEC because it it's the banks for the central banks. It's where the major central bankers go every other month to meet and to try to like manipulate or try to be on the same wavelength uh in terms of policy. Uh they decide what they're going to try to do with interest short-term interest rates, their forward guidance and all that rubbish.

[00:14:01]So, I wrote a comment in the FT article and uh let's see if I got any likes.

[00:14:09]Probably not. Uh because the readers of the FT are not really uh free market people. But I said the easiest thing for markets and the economy would be to get rid of the Fed and allow the free markets to decide the price of credit.

[00:14:24]Central banks are just as bad as OPEC.

[00:14:26]So, there you go. Um, yeah, it's going to be a quick one today. Um, I did interview uh Bob Morotti uh yesterday. I I really enjoyed speaking with Bob. He's such a nice uh gentleman. And uh I'm going to be posting that interview probably later on uh today. And uh I decided to uh post this uh this uh uh report before the interview because I think it's important uh this news about gold is really important and uh I thought I needed to speak to you about it. So yes, hold on to real money. Get rid of the uh useless uh fiat trash. And that's what I said here uh because yesterday I saw it quite early. I had already posted uh my video for yesterday, but uh I had I did hadn't seen the story about gold replacing treasuries, but I posted on on next move over fiat trash. And I I've gotten quite quite a lot of likes uh for for this post, 777, which is quite a lot for me, and uh 17,000 views. So anyway, with that, I'm going to wish you all a very good day.

[00:15:49]Take care. Bye.