You ever notice how everyone suddenly wants gold, but nobody wants to part with it? It’s like trying to get someone to give up their Netflix password. Not happening.
Gold is creeping past $4,000 an ounce, and people are acting like it’s the last bottle of water in the desert. Central banks, those lovely chaps who usually pretend they know what they’re doing, have been hoarding the stuff like it’s the apocalypse. Meanwhile, U.S. Treasuries? They’ve become about as fashionable as Crocs at a black-tie dinner.
Why’s Everyone Obsessed With Gold?
Because it doesn’t die, mate. Literally. Gold’s basically immortal. You can melt it, shape it, stick it in a safe for a thousand years, and it’ll still be gold. No rust, no rot, no nonsense. Try that with your fiat currency. Leave a dollar in your wallet long enough, and inflation will nick half its value before you even notice.
Here’s the kicker: nearly every ounce of gold that’s ever been dug up is still around. That means the “flow” of new gold each year—about 1.5%—barely makes a dent in the massive pile we’ve already got. Compare that with the U.S. dollar, which Washington churns out like candy at Halloween. Spoiler: that ends badly.
The Stock-to-Flow Thing (Don’t Worry, It’s Not That Boring)
Economists have this metric called “stock-to-flow.” Sounds dry, right? But it’s just a fancy way of saying: how much of the stuff exists vs. how much new stuff you can make each year. The higher the number, the “harder” the money.
- Gold: about 65. That’s like a diamond.
- Silver: 22. More like a sturdy paperweight.
- Fiat currencies like the dollar: basically 0. That’s like Monopoly money… if Parker Brothers could print infinite copies.
America’s Little Debt Problem
Now, about Uncle Sam. The U.S. debt is over 130% of GDP, and Washington’s forking out more than a trillion dollars a year in interest. That’s more than the Pentagon spends keeping the planet “safe.”
So investors are going, “Hmm… should I lend money to a government drowning in debt? Or should I grab some shiny, indestructible metal that’s been a store of value since cavemen wore loincloths?” Guess which way they’re leaning.
Silver’s the Sidekick, Not the Hero
Don’t get me wrong, silver’s had its day. People used it as money for centuries. But it tarnishes, it gets used up in iPhones and solar panels, and there’s simply more of it. It’s the Robin to gold’s Batman. Reliable, but you wouldn’t bet your life savings on it.
The Big Picture
Look, the post-WWII dollar era is starting to look a bit shaky. Central banks are quietly swapping Treasuries for gold. Investors are doing the same. And gold? It’s not just holding value—it’s moonwalking past old records.
So what’s the moral of the story? Simple: when governments print money like drunken sailors, gold laughs all the way to the vault.
Everyone wants it. Nobody’s selling. And if history’s any guide, this golden comedy is just getting started.