Is global monetary reset imminent?

 NEW MONETARY SYSTEM STILL UNDEFINED

WILL IT BE BACKED BY GOLD OR THE CLOUD?

Yesterday Gold blew through the $3400 an ounce level and is well on its way to $3500 today. Some may say it it just an aberration, but many believe there is rush by governments to acquire as much gold as possible. Many believe it is in anticipation of some sort of new Bretton Woods agreement that will be the final nail in the coffin of the dollar being the global reserve currency.

The price of gold in dollars has been steadily increasing since the end of the link to the dollar in 1971. It reached a high of over $800 in 1980, a period of high inflation, and a low of $252. in 1999 when central banks of Europe sold gold to balance their books to meet the requirements for the introduction of the EURO.

The price reached $1000 in 2008, $1500 in 2011, $2000 in 2020, $2500 in 2024, and today is at $3452 up 31% in 2025.

This accumulation of gold has been going on for some years, but now it has exploded into a frenzy of buying, mostly by central banks. It is an indication of much anticipation as to the need for gold in the near future.

The U.S. went off of gold backing in 1971 and at present there is no currency that is backed by anything more than the ability of some government to pay its exploding debt. A debt that is unlikely to ever be repaid by any of them.

Accompanying the increase in the price of gold is also the reduction of the buying power of currency, especially currency of a country that has not balanced a budget in over 50 years.

After WW2 the U.S. possessed the largest store of gold in the world and with its currency backed by and redeemable in gold, that dollar was considered "as good as gold", that reality ended in 1971 and the average citizen really had no understanding of the role of money as a store of value or an asset. Money or currency today is a reflection of government debt and has no intrinsic value over the value of printed paper and the willingness of others to accept it for their labor, goods or other things of real value. As it is steadily losing its purchasing power it is not a good store of value. 

Many understand that a reset is near but it is still not clear what this will mean. It most likely will be a devaluing of most all currencies and a loss of purchasing power on a grand scale. The big government enthusiasts would love to end cash and replace it with a Central bank digital currency that would no longer be in control of the owner, but only a digital entry that could be taxed, confiscated or devalued with a key stroke. I would expect it would result in a reversion to the primitive barter system and a rush to poverty for all but a select few.

The other option is a gold backed and redeemable currency that would be a solid store of value for anyone who holds it. It would greatly limit the excesses of governments to defraud its citizens and even to wage war. We could expect a narrative war from those who would despise sound money and government restraint.

Many believe the current situation can go on for decades, but it does appear the present system is coming to an end. It may be replaced by more than one system and the best system will ultimately prevail after some time.