The Morning Brief Are We Going Back to Gold Standards?
Sep 25, 2025
Ritesh Jain, founder of Pinetree Macro and a macroeconomic expert, dives into the changing dynamics of gold in global finance. He discusses how events like the Russia-Ukraine war have shifted central banks' interests towards gold as a neutral reserve asset. The conversation explores the potential for gold to replace the dollar in trade settlements, especially with rising geopolitical tensions. Jain also evaluates the implications for investment strategies and whether silver could emerge as a more accessible alternative.
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Gold As A Neutral Reserve Asset
- Central banks began buying gold after Russia's reserves were frozen in 2022, undermining trust in dollar-based reserves.
- Gold is valued because it is neutral and not anyone's liability, unlike foreign sovereign debt.
Smart Money Prefers Physical Gold Storage
- Institutional capital and high-net-worth individuals are moving into physical gold to escape potential capital controls and jurisdictional risk.
- They store metal in private vaults in Switzerland and Singapore to keep assets outside vulnerable jurisdictions.
Two Parallel Trade Settlement Systems
- A bifurcated global payments architecture may emerge: a US-aligned system using dollar-backed stablecoins and a BRICS-aligned system using gold settlement.
- Gold could become the common settlement medium among countries that distrust Western financial rails.
