PortalsOS

Foreign central banks are moving into gold because they no longer consider U.S. debt a safe asset.

Gold's current status as a risk asset challenges its traditional role as a safe haven. Its rise is driven by momentum and speculation, not intrinsic value or central bank actions.

China is accumulating gold and may have more than the U.S., which hasn't had a public audit of its gold reserves. This raises questions about the quality of U.S. gold and the strategic moves of countries like China and Russia.

Ray Dalio said this week that people should allocate as much as 15% of their portfolios to gold.

The rise in gold, Bitcoin, and AI points to a trend of speculative bets in 2025. Gold, traditionally seen as a safe haven, is now considered a risk asset due to its speculative nature.

Since the final vestiges of the gold standard were abandoned in 1971, the supply of money has ballooned. This has led to more money chasing the same amount of goods, contributing to the rise in prices over the years.