WEALTHTRACK Gold’s Strength Is a Challenge to U.S. Financial Dominance, Warns James Grant
Jul 3, 2025
Financial historian James Grant, founder of Grant's Interest Rate Observer, warns that gold's recent rally poses a threat to U.S. financial dominance. He discusses the declining confidence in the dollar and rising interest in gold by central banks, highlighting potential shifts in global finance. Grant explains how economic uncertainties make gold a stable investment, emphasizing the importance of independent financial strategies while navigating today’s volatile market. His insights challenge traditional investment norms and suggest a reevaluation of asset portfolios.
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Gold Signals Monetary Reappraisal
- Gold's rise reflects a global reappraisal of money's nature and the declining confidence in paper currencies like the U.S. dollar.
- Central banks prefer gold now as it symbolizes financial stability compared to fiat currencies.
Gold's Rise Tied To Geopolitical Concerns
- Central banks' gold buying is driven by concern over the U.S. using the dollar as a geopolitical weapon.
- Countries seek agency and safety, increasing gold's share in world reserves, surpassing the euro.
Geopolitics Influence Gold Demand
- Asia leads gold buying amid a geopolitical shift as China surpasses the U.S. navy in the Pacific.
- Some European countries are repatriating gold amid doubts about U.S. custody safety.