Transcription
Given that gold has already run up to $5,500 and fallen, and this was the major, I guess, development in the precious metals since we spoke last year, late last year. Willem, would you say that gold price movement right now mirrors a bear market such that we saw in 2012 and 1980, post-1980?
No?
No, I think it's different. And and what surprised me is that I I read a research report written by Deutsche Bank, I think a few weeks back, and Deutsche [snorts] Bank was actually >> [clears throat] >> saying, and and I I was almost shocked to learn and to read this report because it was like I was reading my own book, The Big Reset, because Deutsche Bank said that gold is returning, is coming back within the financial system.
They showed a graph that the total gold holdings by central banks is now larger than that treasury holdings. They also pointed to the fact that gold is moving back >> [gasps] >> into the strategic reserves from central banks and is now around 30% of those reserves, and they point to the fact that historically it used to be over 40%. So, they predict and conclude in their report that this bull market for gold is just starting, and when [snorts] they when they try to predict where the gold price was heading, they said that based on these historical patterns and the huge demand by central banks out there, you could well get a gold price of 12 to 14,000 lbs. And this is not just some crazy gold bug writing a report. It's the Deutsche Bank. So, that that that's that's telling.
Okay. Why why are we looking at gold and silver right now as a safe haven play or an inflation hedge play right now still in 2026 is the question I'm getting from a lot of people given that gold has not hedged against inflation when the CPI print went up earlier this year and given that gold has not hedged against the Iran war but actually has moved up and down alongside stocks. Do you think that the reason for holding gold has fundamentally shifted from a hedge against things to a risk on play like Bitcoin for example?
Well, no. People always make the mistake by judging short-term price moves and then change [snorts] their opinion about a metal like like like gold. But, if you look at the larger picture if Deutsche Bank is right, if if I'm right with my big reset thesis we see a US empire in decline which means that demand for US Treasuries will go down and will continue to go down and we can we can see that this trend is unfolding as I've explained that central banks are selling [snorts] US Treasuries and and are adding to their gold reserves. So, the bigger picture is still is is still there.
And and and when you're in a when you see the start of a big trend, you can expect the trend to continue and I just looked at the numbers of central banks. Central banks, they own around 11 trillion in bonds. They own around five four five trillion in in in treasuries. >> [snorts] >> They own around five trillion in in in physical gold. They added some 600 billion in physical gold holdings over the last four, five years. So, if they continue to sell some of their treasuries, let's say 20% of their treasuries, that's another 1 trillion which could be turned towards gold. And that that's that's that's almost double the amount of money they they they used to buy more physical gold in the last five years. And that's exactly what Deutsche Bank concluded in their report. It's about central bank demand. It's not about retail demand.