War Room’s Steve Bannon talked with precious metals specialist Phillip Patrick of the Birch Gold Group about banks increasing gold holdings over the US dollar.
“I want to start with just a basic question people ask me all of the time,” Bannon commented.
“How did we get here in a situation where gold goes from I don’t know, $1,100 bucks, couple years ago when we started this partnership of trying to explain to people about gold as a hedge. How did it get to $3,800? And what are the top financiers in the world seeing that’s driving gold almost sometimes like a stock, which is not traditionally how it moves. Can you walk us through that?” Bannon asked.
“This isn’t a new thing. Obviously, what we have been seeing since 2008, since 2020 has been unprecedented in terms of gold’s movement, but it started really growing at the turn of the century,” Patrick said.
Patrick explained that there was a direct connection in the growth of gold investments since the money supply was greatly increased during the early part of the century. It was a hedge against inflation.
“What’s interesting is what changed at the turn of the century. It’s when we started to massively increase the money supply,” Patrick said.
“There is a direct correlation between growth and debt, the money supply and growth in gold,” Patrick continued.
“Look what the Biden administration did. 8 trillion dollars of liquidity pumped through the markets in four years. It’s no surprise gold is moving at the level that it is,” Patrick continued.
Patrick explained that gold has been replacing the Euro and US Government debt for reserve assets in central banks. A majority of them are interested in a major increase in gold over the US dollar.
“Gold is now becoming slowly, the favored central bank reserve asset. I’ve mentioned before, it overtook the Euro last year. It’s now a larger share of global reserves than US Government debt,” Patrick explained.
“And now gold is really taking the place of certain fiat currencies. Folks, this is something you must understand because this is central to your financial security going forward,” Bannon said.
“Now the central banks are looking at this as almost the reserve currency. Are they not sir?” Bannon asked.
“It is clear to see, 73 percent of central banks that were surveyed said over the next five years, they were looking at massively increasing gold holdings and reducing US dollar holdings,” Patrick said.
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