Signs of Monetary Regime Change

The recent surge in gold prices is thought to be indicative of a potential monetary regime change. Historical data shows that major shifts in the world's monetary order occur when commodities become significantly cheaper relative to financial assets. This imbalance leads to subtle yet significant changes in the monetary system. The current environment, with real assets priced lower than financial assets, allows central banks to maintain loose policies for an extended period. This imbalance is believed to be the driving force behind the surge in gold prices and may eventually lead to a shift in the global monetary system, as countries like China move towards settling commodity trades in their currency rather than the US dollar.