SD Bullion

US Treasury Confronted on BRICS Trade Settlement News

US Treasury head Janet Yellen was confronted about the impact of the BRICS currency trade settlement system during her visit to China. The claim that 90% of international transactions involve the US dollar is misleading; the actual figure is closer to 43%. Factors like the rise of m-CBDC systems and increasing gold reserves in BRICS nations are likely to further reduce the demand for the fiat US dollar.

BRICS Gold Plan Confirmed By Russian Sources

According to a foreign embassy serving as a source for a Russian state-run media channel, there are growing speculations and reports suggesting that the BRICS nations (Brazil, Russia, India, China, and South Africa) are planning to introduce a new trading currency backed by gold in the near future. Ongoing claims are that an announcement is expected to be made during the BRICS summit this coming August 22-24th in South Africa.

Anomalies Not Seen Since the Great Depression

The US Supreme Court's decision not to allow up to $20,000 in student loan debt forgiveness proposed by the Biden administration highlights the challenges facing the US consumer-driven economy. The exponential growth of college loans since the 2008 financial crisis, coupled with rising college costs, has left over 43 million US citizens burdened with student loan debts. The increasing number of young adults living with their parents and the soaring prices of houses indicate a concerning trend that may persist for some time, potentially shifting the focus towards investing in gold bullion for wealth preservation and value gains.

BRICS Move to Gold August 22, 2023

US Treasury Secretary Janet Yellen's admission in Paris suggests forthcoming regional bank failures or consolidations. She advocates for balance sheet expansions of the IMF and World Bank to tackle the impending global crisis. Yellen acknowledges the rising competition from the east and the BRICS, highlighting the US dominance in flooding the global system with fiat dollar denominated debts. Bestselling author James Rickards predicts a transition to a gold-linked currency trade settlement system by the BRICS+. While some may be skeptical, his claims await validation in the near future.

The Shift Towards a Multipolar Reserve Currency World

US Treasury Secretary Janet Yellen all but admitted to the US congress this week that we are heading into a more multipolar reserve currency world. A future that will depend much less on our currently still dominant fiat US dollar Federal Reserve note and offshore eurodollars for global trade settlements.

Chinese Call for International Silver Market Reform

China Construction Bank is expanding its global capacity to cater to its precious metals and bulk commodity trading clients. A call for international silver market reform has been made in China, highlighting the excessive leverage used to suppress gold and silver prices. China's consistent purchase of gold bullion is emphasized, suggesting it as a safer investment compared to cryptocurrencies amid potential fraudulent practices in the crypto market.

Debt Ceiling Fiasco as New Whales Buy Gold & Silver Bullion

Tavi Costa of Crescat Capital tweeted the following important gold vs US debt chart stating, "Investors often use the 1940s period as a compelling historical analogy to today given the severity of the current US debt to GDP problem."

However, there is one major distinction that is often ignored.

During that time (around World War II), the US dollar was effectively tied to gold prices, making the metal an unfeasible investment alternative.

Today, with prices unpegged, it is highly probable that capital will divert away from US Treasuries and flow into gold.

Ex-Fed Governor: Gold Will Be The Single Best Investment To Own

Former Federal Reserve Governor, John Exter, once quipped, "The U.S. and world economies are on the threshold of a deflationary crash that will make the 1930s look like a boom. Gold will be the single best investment to own. Buy it now while it's still cheap."

For now, with spot price dips in gold commercial banks, UBS has three takes why now is a good time to get going long gold.

The gold and silver market selloff has begun, the question is how far will it dip.

1 in 4 US Banks Face Bank Run Insolvency

A recent academic study revealed that 1 in 4 US banks, or close to 1,200, are at risk of bankruptcy due to unrealized losses on assets not marked to market. The study also highlighted the concentration of uninsured deposits within G-SIBs like JP Morgan, Bank of America, Wells Fargo, and Citibank.

Central Banks Continue Buying Gold at Record Pace

Central bank gold bullion demand has just made a record-breaking start to Q1 2023. Net buying totaled over 228 metric tonnes this past first quarter of 2023.

That is +34% higher than the previous Q1 record set in 2013, as back then, governments were heavily buying the interim gold bear market spot price dip.