Name: “Something Big Is Coming… And No One Is Ready”
Uploaded: 2025-07-28T17:53:40.000Z
Duration: 12 min 35 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Present continuous

Something weird is happening with gold prices.

Over the last 6 months, gold prices have risen by around 30%.

In comparison, the S&P 500 has grown by less than 2%.

And it should be the other way around, because the S&P 500 represents real companies that produce real goods and services, while gold doesn't produce as much.

Even if you compare it to some of the prominent companies in the stock market, such as Apple, Apple has lost around 20% of market share over the exact same period.

How is it possible that an asset that does not produce anything over the last 12 months has grown by 50%?

Computers and smartphones contain a little amount of gold.

Only less than 7% of all the demand for gold is for the smartphones, while there is a huge demand for jewelry as well.

But most people do not view gold as a form of investment.

Because if you are investing in something, you want your investment to produce something.

You would buy a house that you can rent out.

You would invest in a business that produces real value consistently.

Apple produces smartphones, Amazon produces fast delivery, Nvidia produces the chips that power today's AI.

If you zoom out and take a look at gold prices historically, you will instantly see that there was a very long period of time where gold prices have been very stable.

And in 2020, something fundamentally happened that changed the trajectory of gold prices and suddenly they started growing tremendously.

Ever since 2020, they have grown by 120%, which makes gold one of the best investments in the market.

So many businesses, so many stocks, so many crypto have gone bankrupt over the last 5 years, especially in 2020 when the Fed hiked the rates.

But we are seeing the absolute opposite effect on gold.

There is only one reason why prices of anything would possibly rise.

And why did they decide suddenly that they want to buy so much gold right now that prices have shot to the roof?

There aren't many people who can buy so much gold that they can create such a huge demand that would spike prices.

And if they are doing that, then maybe we are going back to the gold standard since the demand for gold is rising.

Remember, the greatest competitor to the US dollar is not any other currency, because other currencies would not even come close to the US dollar.

So if demand for gold is rising, then the demand for the dollar is falling down which is the greatest threat to the existence of the dollar as the superpower currency that controls the world and makes the US such a powerful economy.

But to answer those questions, we have to understand how gold prices work in the first place.

If you look at gold prices historically, you will see that there are sudden spikes, such as in the 1970s or the 2000s.

On the other side, which you see that, there are very long periods where gold prices have been extremely stable for a very long time.

Whenever there is a crisis and massive devaluation of the currency, gold prices instantly jump.

Back in the 1970s, first of all, we had an abandonment of the gold standard which created the first inflation, but it was followed by a massive shock prices of oil when Arab nations decided to embargo the United States, and a shortage of oil in the market shot prices to the roof which created massive inflation in the US.

So even if the Fed had hiked the rates so much, it did not stop that inflation which led to the gold prices to rise as much as you see it.

In the 2000s, United States started an invasion of a country that was one of the major producers of oil.

But that was followed by the greatest crisis of the 21st century when the housing market in the US crashed, when the mortgage-backed securities that everybody so eagerly invested in totally collapsed.

That brought down the US economy to its knees, and as a result of that, the entire global economy suffered.

And you can clearly see that how that affected gold prices.

On the other side, there are periods where gold prices did not rise that much.

In fact, they have even gone down since then.

And that's because the United States economy during this period was growing tremendously, it defeated the Soviet Union and won the cold war.

And the US influence and the US economy and the power of the United States went beyond that anybody could possibly imagine back in the 1980s.

And that's why in the 1990s, gold prices started falling down.

The entire global economy depends on the confidence in the United States.

In 2008, to save the economy, the United States did one of the most unthinkable things ever, which is massive quantitative easing.

So it wasn't that gold suddenly became more valuable.

When you see that gold prices are rising so much, it's not that gold suddenly became different and now we can use gold for something else.

Or it's not because the world has changed.

It's because the Federal Reserve has printed so much money that it devalued the dollar and the effect of that was simply rising gold prices.

So what exactly has happened in 2018 that suddenly everything has changed and it got out of control and it spiraled to $3,500.

United States suddenly wanted to start a trade war with China.

When Trump was elected president and he imposed those tariffs against China, it sent a clear message to the rest of the world that the United States is afraid, that the United States no longer can win this war economically through free trade, but would rather have to use some kind of war in order to win it, that China is now a real threat to the United States.

So when confidence in the United States goes down, the confidence in the dollar suddenly starts to shrink and it increases gold prices.

And the United States made it clear that it is ready to borrow as much money as possible in order to win this war.

In 2020, it borrowed trillions of dollars.

Last year, it borrowed over 2 trillion dollars.

If you look at the independent or bipartisan experts who actually made their analysis, they are showing you clearly that the United States is on a trajectory that it will continue borrowing trillions of dollars to win this trade war against China and everyone else and establish the US supremacy over the world yet again.

And that again means that more dollars in the economy, higher gold prices.

China is trying to diversify its portfolio by selling its treasury bills.

If you go back to 2015 and 2016, China was the largest holder of US treasury bills.

But since then, they started massively selling their treasury bills and using that money to buy a lot of gold in the market, which increased the demand for gold and decreased the demand for treasury bills.

Even when the Fed hiked the rates in 2020, which is supposed to have an effect of reducing gold prices because they would make the dollar much more valuable, it didn't have much of an influence and prices still kept rising after that.

United States is increasingly taking decisions or policies that are isolating the United States and destroying the global financial system that the United States itself has created.

It's starting trade wars, implementing isolation policies, and is trying to move countries outside of the sphere and influence of the United States.

Why would you actually sanction countries that they stop using the dollar and as a result of that, the weakness of the dollar starts to emerge?

As a result of that, less people start using the dollar.

On one side, you want the dollar to be the global reserve currency.

On the other side, you have sanctioned Iran, you have sanctioned Russia, and now you're threatening to even sanction China if they do something that you don't like.

And China is not Iran, it's the world's second largest economy.

And a lot of countries are deeply connected to the Chinese economy and sanctioning China or trying to limit China's influence or China's growth economically is only going to result China using the dollar much less and using the local currency much more often.

So we are moving into a multi-polar world where the United States is no longer going to be the only superpower.

It will not be the only country that has monopoly over the world.

But how are the rules of the game will look like?

Because multi-polar world will have its own rules.

When you have one country that has full supremacy over the world, you have certain types of  And that means that those rules will be created by the United States.

And for investors, it's very clear, the US is the leader and we trust the dollar.

And now when we have multi-polar world where we have different countries that have different sphere of influences, how will that world look like?

Whose currency will be the global reserve currency?

Well, we'll continue having the dollar as the global currency reserve, but the United States will no longer have this sanctioning policy against other countries.

Because we don't know the rules, it's much safer for us to park a huge portion of our portfolio into some kind of risk-free assets such as gold, especially with two major conflicts that are happening.

The United States might as well lose Europe.

If Russia is going to win the conflicts happening in Europe right now, it will be economically much stronger, demographically and geographically much bigger.

And it might have a much bigger influence over the rest of Europe compared to the United States.

Remember, United States is on the other part of the world, where Russia is just their neighbor.

Secondly, Germany is already asking the United States to bring its gold back to Germany.

After World War II, a lot of countries, especially European countries such as Germany and Italy, kept their gold in the United States.

But recently, since Trump took office, they are asking for their gold back because they no longer trust the United States as much as they did back in the days.

Secondly, there is a huge conflict that's taking place in the Middle East.

And because the United States had to use military force against Iran clearly shows that the United States' economic power is not as strong as it has always been.

Because if you have sanctioned a country for 50 years and you expect their economy to collapse and yet they have only emerged stronger, what does it tell you about the state of your power economically?

So the main question is that, will oil prices continue rising?

Based on the graph that you see in front of you, the answer is crystal clear, yes.

Because the United States will continue running a huge deficit at least until 2035.

But until the government keeps running that huge deficit to win this trade war against China and everyone else, the dollar will continue being devalued and the direct result of that is going to be higher gold prices.