The David McWilliams Podcast Is $4,000 Gold the First Crack in the Fiat Era?
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Nov 20, 2025 Dive into the shimmering world of gold as it approaches $4,000 an ounce! Explore how California's gold rush reshaped the economy and the demographic landscape of America in 1849. Hear tales of pioneers like Johann Sutter and the remarkable shifts in mining technology across continents. Discover why central banks are hoarding gold again—could it signal a new era for fiat currencies? From the mudslides of Malibu to the storied vaults of Fort Knox, this discussion connects gold's glittering past with its uncertain future.
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Gold Supply Shock Enabled Global Finance
- Mid-19th century gold finds multiplied annual world gold output by over ten times versus the 18th century.
- That supply shock enabled the gold standard and underpinned global trade and financialisation.
Sutter's Lost Colony
- Johann Sutter built a large settler colony called New Helvetia before finding gold disrupted everything.
- James Marshall discovered gold at Sutter's mill and Sutter later said his best days were before the discovery.
Australia's Rapid Transformation
- The Australian gold rush transformed a penal colony into a booming, diversified economy almost overnight.
- Within six months of discovery, 50,000 people were mining and wealthy miners even imported ice from Massachusetts for cold drinks.
