If the Dollar Loses Reserve Status, Could Gold Surpass $39k?

I'd like to get your thoughts on this report.

For a long time metals "bugs" have been predicting metals to the moon. But it's one thing to have people like Jim Rickards and Peter Schiff posting Youtube videos about this, it's quite another to have a fund family like Van Eck release a report that fingers $39,000 an ounce as the *bottom end* of the range it could move into.

Fortunately I've had concerns about this for a long time and was properly positioned for such a move.

But if this report is correct, we may be in the 3rd inning of this game.

good question, we've been discussing in the office a bit

I think two key questions 1) will Trump admin really get the USD to lose reverse role? and if so 2) will the next admin be able to reverse that trend?

I don't have an answer for either of those, but certainly interesting times.

I don't think the executive branch can really do much about that. There are, in my opinion, two main trends driving de-dollarization:

(1) The willingness of the federal government in general, and the State Department specifically, to use the currency as a policy weapon
(2) A complete unwillingness to restrain deficit spending and address the growing debt to GDP ratio.

Realitybites said:

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I don't think the executive branch can really do much about that. There are, in my opinion, two main trends driving de-dollarization:

(1) The willingness of the federal government in general, and the State Department specifically, to use the currency as a policy weapon
(2) A complete unwillingness to restrain deficit spending and address the growing debt to GDP ratio.

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Agree with 2, don't agree with 1.

And Trump is definitely the driver. Not sure how you ignore that as never before his first term was this even on the radar except in Beijing wildest fantasies

One would have to think the closer and closer the USA comes to default on debt payments, the higher and higher the precious metals will go.

I read that Sweden, Denmark, and some other European Countries, sold off US Treasury Bonds due to the threat of the USA taking over Greenland. China has been selling off US Bonds too. I think they could have put the money into Gold and Silver. This could contribue to the increased price of precious metals.

Silver down 31 percent today. OUCH!!!!!!!

$Bitcoin back down to $84,000. Down 33 percent from its all-time high.

RD2WINAGNBEAR86 said:

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Silver down 31 percent today. OUCH!!!!!!!

$Bitcoin back down to $84,000. Down 33 percent from its all-time high.

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Yeah. Saw that. The theory is that Trump has gone against his "cut rates" campaign and nominated the hawkiest hawk that ever hawked for fed chair.

Realitybites said:

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RD2WINAGNBEAR86 said:

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Silver down 31 percent today. OUCH!!!!!!!

$Bitcoin back down to $84,000. Down 33 percent from its all-time high.

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Yeah. Saw that. The theory is that Trump has gone against his "cut rates" campaign and nominated the hawkiest hawk that ever hawked for fed chair.

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Bitcoin currently $77,000 and falling. Many FOMO investors are about to find themselves without a chair when the music stops.

Bitcoin now trading at $74,000 and still falling.

RD2WINAGNBEAR86 said:

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Bitcoin now trading at $74,000 and still falling.

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as soon as the mcrib is back at mcdonalds, it will go up again..

4th and Inches said:

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RD2WINAGNBEAR86 said:

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Bitcoin now trading at $74,000 and still falling.

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as soon as the mcrib is back at mcdonalds, it will go up again..

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$73,000 and falling. The Bitcoiners had better hope the little Japanese guy that invented it in his basement that nobody has ever met does not sell all of his Bitcoin.

RD2WINAGNBEAR86 said:

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4th and Inches said:

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RD2WINAGNBEAR86 said:

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Bitcoin now trading at $74,000 and still falling.

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as soon as the mcrib is back at mcdonalds, it will go up again..

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$73,000 and falling. The Bitcoiners had better hope the little Japanese guy that invented it in his basement that nobody has ever met does not sell all of his Bitcoin.

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Currently $71,000. Should we call in hospice or should we wait?

RD2WINAGNBEAR86 said:

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RD2WINAGNBEAR86 said:

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4th and Inches said:

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RD2WINAGNBEAR86 said:

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Bitcoin now trading at $74,000 and still falling.

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as soon as the mcrib is back at mcdonalds, it will go up again..

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$73,000 and falling. The Bitcoiners had better hope the little Japanese guy that invented it in his basement that nobody has ever met does not sell all of his Bitcoin.

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Currently $71,000. Should we call in hospice or should we wait?

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its not looking good.. mcrib isnt scheduled to br back until october 2026!

4th and Inches said:

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RD2WINAGNBEAR86 said:

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RD2WINAGNBEAR86 said:

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4th and Inches said:

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RD2WINAGNBEAR86 said:

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Bitcoin now trading at $74,000 and still falling.

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as soon as the mcrib is back at mcdonalds, it will go up again..

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$73,000 and falling. The Bitcoiners had better hope the little Japanese guy that invented it in his basement that nobody has ever met does not sell all of his Bitcoin.

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Currently $71,000. Should we call in hospice or should we wait?

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its not looking good.. mcrib isnt scheduled to br back until october 2026!

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Currently $63,000. Still falling.

I believe a lot of municipalities that added BTC to their investments also added a "doomsday" sell order that forced them to liquidate if it ever dropped to a certain level. Many of those levels are being triggered currently.

Tellingly, a typical bitcoin crash is usually buoyed by giddy crypto-bros who swoop in and "buy the dip" with dreams of being billionaires. They're not riding to the rescue this time. Much like "bored ape" NFTs, it could be that the consensual hallucination about bitcoin is about wrapped up.

Gold itself is currently whipsawing in a manner that it just isn't supposed to do. It's meant to be a boringly stable asset where one can park wealth with minimal risk. Of course, with minimal risk comes minimal reward. The reward is supposed to be a stable return of funds once other options settle down.

The World is currently learning how to get along without the US Economy. It will be unstable for a bit, but then reach steady state.

I can't remember or find the thread I posted it on, but I warned "the apes" that getting Bitcoin, etf's on it, options on it, etc, was the beginning of the death knell. It's not De-Fi when Wall Street pulls the strings.

Ugly out there in crypto world. Lot of money getting liquidated.