Gold is telling us something we can't ignore. José Luis Cava

Summary

The video discusses the significant rise in gold prices and the message it sends about global economic trends. Over the past century, the price of gold has been determined in London, but now Shanghai’s market has grown in importance. The video explores massive gold purchases, particularly by central banks and institutions, as they diversify risks amidst growing public debt. It highlights China’s increased gold imports and ETFs, indicating a shift toward gold as a safe asset. The video suggests a potential new world order driven by rising debt and the continued purchasing of gold despite attempts to control its price.

Takeaways

• 😀 Gold prices have been rising significantly, signaling a message that cannot be ignored.
• 😀 For over 100 years, the gold price reference was set in London, but recently, Shanghai has gained importance and even leads in gold pricing.
• 😀 In the first 11 days of April 2025, Chinese ETFs bought more gold than in the entire first quarter of 2025, showing a massive surge in demand.
• 😀 The volume of gold trading on the Shanghai Stock Exchange is increasing, highlighting the growing demand for the precious metal.
• 😀 The People's Bank of China has raised import quotas for gold, indicating heightened demand from both institutions and individuals.
• 😀 Central banks, institutions, and even individuals are increasingly purchasing gold as a means of diversifying risks, especially with concerns about public debt.
• 😀 Gold is now seen as a safer investment compared to public debt, which is near its growth limit.
• 😀 The rise in gold buying is being led by central banks, who are increasingly unable to control the price of gold and are now major buyers themselves.
• 😀 Since the year 2000, the value of gold has increased significantly, far outperforming fiat currencies like the euro or the dollar.
• 😀 The United States still has room to increase its public debt ratio, but there is no political will to reduce public deficits, contributing to the growing appeal of gold.
• 😀 The speaker encourages viewers to reflect on the chart of gold prices during the Easter period and consider the implications of these financial trends.

Q & A

What recent event has caused a significant increase in the price of gold?

The recent surge in gold prices is primarily due to a sharp increase in demand for gold, especially driven by central banks, institutions, and individual investors. This is reflected in record purchases, particularly in China, and a rise in trading volume on exchanges like Shanghai.

Who are the main buyers of gold according to the transcript?

The main buyers of gold are central banks, large institutions, and private individuals, with central banks leading the charge. The buying volume has reached levels not seen since 2019, particularly in China.

Why is gold increasingly being used by investors and institutions?

Gold is being used as a means to diversify financial risks. As public debt continues to rise, and the reliability of fiat currencies becomes questionable, gold is seen as a safer store of value to hedge against inflation and economic uncertainty.

How does the price of gold today compare to its historical performance?

Since the year 2000, the price of gold has increased significantly. If one had invested in gold instead of traditional currencies like the euro or the dollar, their wealth would have multiplied by more than 20 times.

What role does the Shanghai Stock Exchange play in the gold market?

The Shanghai Stock Exchange has gained increasing importance in setting the price of gold, even competing with London in the price-setting process. In recent years, Shanghai has played a leading role in gold trading, driven by a surge in activity.

What is the significance of the recent data from the first 11 days of April regarding gold purchases in China?

In the first 11 days of April, China’s purchases of gold ETFs surpassed the total amount bought in the entire first quarter of 2025. This indicates a sharp rise in demand for gold, reflecting the country's aggressive strategy to accumulate the precious metal.

Why is the situation of public debt a key concern in the transcript?

The growing public debt is a significant concern because many believe that we are nearing the limit of how much debt can be sustained. The speaker suggests that there is little political will to reduce deficits, which leads to an increase in the reliance on gold as a hedge against the potential collapse of fiat currencies.

What does the speaker believe about the future of public debt in countries like the United States?

The speaker acknowledges that while the U.S. has more room to increase its debt levels, the key to managing this debt lies in the political will to show a commitment to reducing the deficit. However, the speaker is skeptical that any political party would genuinely aim to reduce public debt.

What impact do central banks have on the price of gold today?

Central banks are currently major drivers of gold purchases, which has led to higher gold prices. The speaker notes that central banks used to try to control the price of gold, but they are now the ones purchasing it, indicating a shift in their approach to managing financial risk.

How does the speaker view the potential for a 'new world order' in global finance?

The speaker suggests that we may be approaching a new global financial order, where traditional financial instruments like government debt and fiat currencies lose their appeal. As public debt continues to grow and central banks lead the charge in gold purchases, the speaker believes a shift toward tangible assets like gold is becoming inevitable.