“A word about gold: The freezing of Russian currency reserves and the reserves of Russian oligarchs has given the coup de grâce to an international monetary system that started as a gold standard, morphed into a gold exchange standard (1922), and morphed further into a convenient dollar standard (1971). For international transactions, we may soon go back to a new gold standard or to a commodity standard of sorts. But no proud sovereign will again maintain its last-resort reserves in the currency of its potential rival or keep them in its banking system. The next step in this evolution will surely be taken by China, the holder of 3 trillion dollars’ worth of currency reserves. When it does, gold will no longer be trading at $2,000/oz., or $2,500/oz., or even $3,000/oz. It stands to reason that it will trade at a multiple of the latter.”

Download the Quarterly Report

Download the publicly posted Quarterly Podcast

Disclaimer: The views or opinions expressed in this blog post may or may not be representative of the views or opinions of the Financial Repression Authority.