Warfare Room’s Steve Bannon talked with treasured metals specialist Phillip Patrick of the Birch Gold Group about banks growing gold holdings over the US greenback.
“I need to begin with only a primary query individuals ask me the entire time,” Bannon commented.
“How did we get right here in a scenario the place gold goes from I don’t know, $1,100 bucks, couple years in the past after we began this partnership of making an attempt to elucidate to individuals about gold as a hedge. How did it get to $3,800? And what are the highest financiers on this planet seeing that’s driving gold nearly generally like a inventory, which isn’t historically the way it strikes. Are you able to stroll us via that?” Bannon requested.
“This isn’t a brand new factor. Clearly, what now we have been seeing since 2008, since 2020 has been unprecedented when it comes to gold’s motion, but it surely began actually rising on the flip of the century,” Patrick mentioned.
Patrick defined that there was a direct connection within the progress of gold investments for the reason that cash provide was vastly elevated through the early a part of the century. It was a hedge towards inflation.
“What’s attention-grabbing is what modified on the flip of the century. It’s after we began to massively enhance the cash provide,” Patrick mentioned.
“There’s a direct correlation between progress and debt, the cash provide and progress in gold,” Patrick continued.
“Look what the Biden administration did. 8 trillion {dollars} of liquidity pumped via the markets in 4 years. It’s no shock gold is shifting on the degree that it’s,” Patrick continued.
Patrick defined that gold has been changing the Euro and US Authorities debt for reserve property in central banks. A majority of them are eager about a serious enhance in gold over the US greenback.
“Gold is now changing into slowly, the favored central financial institution reserve asset. I’ve talked about earlier than, it overtook the Euro final yr. It’s now a bigger share of worldwide reserves than US Authorities debt,” Patrick defined.
“And now gold is actually taking the place of sure fiat currencies. Of us, that is one thing you should perceive as a result of that is central to your monetary safety going ahead,” Bannon mentioned.
“Now the central banks are this as nearly the reserve forex. Are they not sir?” Bannon requested.
“It’s clear to see, 73 % of central banks that had been surveyed mentioned over the subsequent 5 years, they had been massively growing gold holdings and lowering US greenback holdings,” Patrick mentioned.
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