1/ Over the past 12 months, #gold has reached new all-time highs in almost all currencies.
With a gain of 24.6%, gold’s performance in 2020 was stellar in US dollar terms.
It was weaker in euro terms at 14.3%, but still well into double digits.
2/ At the same time the global macroeconomic situation has worsened.
The Covid-19 pandemic added about $24trn to the global debt mountain last year.
It has now reached a record level of $281trn, and the global debt-to-GDP ratio now exceeds 355%.
3/ Over the past decade, the actions of central banks have pushed yields on $12.2trn of government bonds into negative territory: an amount approaching the GDP of the entire Eurozone.
For bondholders, inflation is likely to be the pain trade of the decade ahead.
4/ Fiscal dominance is accelerating the merging of monetary and fiscal policy.
Emblematic of this is the appointment of former Federal Reserve chair Janet Yellen as US Treasury secretary and former ECB President Mario Draghi as Italian prime minister.
5/ The political independence of central banks has always been the institutional guarantor of confidence in the stability of the currency.
The closer this liaison between monetary and fiscal policy grows, the greater the likelihood of a loss of confidence.
6/ Over the past year it seems as if the excitement around “digital assets” is being exploited to market central bank digital currencies.
In our view, CBDCs are a wolf in sheep’s clothing, allowing for more authoritarian control over money.
⚡ 1/10 Gold is surging — so why aren't miners booming?
💰 Despite record gold prices ($2,389/oz in 2024), major gold producers aren’t racing to expand. The new mantra? Fiscal discipline over flashy growth. Here's why miners are choosing to save, not to grow. 🧵👇 #GoldMiners #IGWT25 ingoldwetrust.report/?lang=en
2/10 ⚒ Gold is there—but they're not digging fast enough
🔍 Between 2009–2023, miner revenues generally tracked gold prices. But in 2024, this broke:
Gold up 📈to $2,389
Revenues? 🥱Largely flat.
Why? Because production is down across most firms despite record pricing. #GoldMining
1/10 🚨 Saudi Arabia is quietly launching a new gold rush
Backed by $2.5 TRILLION in mineral wealth and Vision 2030, the Kingdom is turning geology into geopolitical leverage. This is more than mining—it's a shift in global power dynamics. 🧵👇
Read the full #IGWT25 here: ingoldwetrust.report/?lang=en
2/10 📍 The Arabian-Nubian Shield
This 3M km² mineral-rich belt sits beneath western Saudi Arabia. Only 30% explored, yet already holds 48 known minerals. 💰 In Jan 2024, the Country doubled its mineral wealth estimate from $1.3T →$2.5T. #NaturalResources
3/10 ⛏️ Ma’aden is the key
The Saudi Arabia’s state-backed mining giant:
- Produced 407,000 oz of gold in 2023
- Mansourah-Massarah mine output grew 10x YoY
- Target: 1.6 million oz by 2040 – a 4x increase
🧠 Saudi Arabia transforms from oil to ore, Ma’aden leads the way. #MiningCompany
📢 1/10 🇨🇳 Where is China heading in a world gripped by system rivalry?
The #IGWT25 report in the Focus on System Rivalry: Where Is China Heading? chapter dives deep into Beijing’s grand strategy amid economic shifts, demographic headwinds & geopolitical tensions. Let’s unpack it. 🧵👇
#Geopolitics ingoldwetrust.report/in-gold-we-tru…
2/10 🧱 China's economic model is hitting a wall
Demographics are turning south, with population decline accelerating.
Beijing must pivot its growth strategy from focusing on real estate and infrastructure. But, it’s not clear to what. 🤷♂️
#ChinaEconomy #Demographics
3/10 🏛️ China is doubling down on centralization
🙇♂️ Xi Jinping’s leadership has pushed ideological conformity, tighter state control & a return to Mao-era governance styles.
Innovation is under pressure.
#XiJinping #ChinaPolitics
As is customary at every BRICS Summit, the leaders have accepted a declaration this year at Kazan, outlining decisions, goals, and agreements between the parties.
Here is a thread outlining everything in the declaration of importance to currency and banking:
1. The leaders of the BRICS countries express their commitment to enhancing financial cooperation within BRICS. They support the use of local currencies in financial transactions between BRICS countries and their trading partners.
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2. The document tasks the Finance Ministers and Central Bank Governors of the BRICS countries to continue considering local currencies, payment instruments, and platforms. They are to report back to the BRICS leaders by the next Presidency.(next year)
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3. The BRICS Contingent Reserve Arrangement (CRA) is recognized as an important mechanism to forestall short-term balance of payments pressures and strengthen financial stability. The document expresses support for the CRA mechanism improvement via envisaging alternative eligible currencies and welcomes the finalization of the amendments to the CRA documents.
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1. The high inverse correlation between US real yields and the gold price is history (for now). Despite the rise in real yields, the rise in the gold price could not be halted.
2. Central banks are a decisive factor in the demand for gold: Demand from these institutions is not very price-sensitive. Central banks are likely to have put a floor under the gold price.
3. The weaponization of fiat money has lasting consequences: The confiscation of Russian reserves and assets of Russian oligarchs in 2022 was a wake-up call for numerous states, as well as wealthy private individuals from the Gulf states, Russia, and China. (Luxury) real estate in London, New York or Vancouver has always been the preferred destination for savings
from emerging markets, but this has changed in 2022.
We feature quite a few charts, but our favourite remains the gold/Okteberfest beer ratio.
Gold has not only maintained its beer purchasing power over the last 12 months, the ratio even increased from 121 to 123 Maß Oktoberfestbier, despite the price increases in euros. 1/
We also feature the iPhone/gold ratio. Every year, the latest Iphone is more expensive than the previous year.
But not if you hold gold. The first iPhone sold for 0.92 ounces of gold in 2007. Fifteen years later, only 0.75 ounces of gold are due for the iPhone 14 Pro. 2/
Not only do holders of gold pay less than 15 years ago, but they also get a vastly superior product to that of the past, proving that gold is an excellent store of value. 3/