Gold Keeps Going Up — Is it Too Late to Buy

The price of gold keeps going up. But why does it keep going up? And is it too late to invest in gold? In today's video, I'm going to answer those two very important questions. Let's review why the price of gold keeps going up. And the first aspect is going to be inflation. Gold is often called an inflation hedge, and that's for a reason. Now let me ask you, what are central banks doing right now? What's the Federal Reserve doing? They are printing dollars. They are printing more and more fiat currencies. The Federal Reserve, to be specific, they are printing $40 billion a month. And they're just getting started in this round of quantitative easing. If the Federal Reserve prints more and more money, then what's going to happen? Well, the price of almost everything is going to increase. And we're talking about food, electricity, cars, homes, stocks, and gold. Gold is not going to be an exception. Because you're going to have more dollars chasing after the same amount of goods. But I want you to understand that there are other variables in play that's pushing up the price of gold. Interest rates are a very important factor. And I want to tell you why. When you have inflation, people look for a way to hold their purchasing power. And gold has done that job for thousands of years. Now with that being said, just think about our current situation. What's our current rate of inflation right now? About 6%, maybe 7%, 8%? Okay, if you stick your cash into a savings account, then what's the bank going to pay you? You know, 3%, maybe 4% if you're lucky. If you stick your cash into treasury bonds or notes, then what are you going to get? You're going to get 4%, 4 point something percent, right? All right, so you're going to get paid 3% or 4% on your cash. But inflation is running at 6%, 7%, 8%. That's a negative real interest rate. So that's not even factoring the taxes that you're going to pay on the interest income that you're going to make. So in today's setup, you're getting eaten alive by inflation. You're losing purchasing power, and you're getting punished for saving money in US dollars. Therefore, gold becomes more attractive as a way to retain your purchasing power. But listen, I don't want you to misunderstand what I'm saying. You can absolutely maintain your purchasing power with stocks, with real estates, or in other physical assets. You know, for example, the S&P 500 went up 16% last year in 2025. But even if, okay, if you're going to look outside the US, like look at China. Do you really think that the Chinese want to save their wealth in real estate right now? You know, after the horrific real estate crash that they just went through? And my assumption would be, the Chinese are going to turn to gold, which they are. And if we're talking about real estate, especially investment real estate, I would ask you the same question. How about you? If you want to preserve your purchasing power, do you want to do it with a rental property or investment property, manage it, and deal with tenants? You know, some people do, and I respect that. But most people would prefer to buy a gold coin or a few gold coins and do absolutely nothing, watch US dollars devalue, and watch the price of gold go up. And you know what? I'm talking to you from personal experience because I have rental properties and I have physical gold. And I'll tell you that there's a lot less that goes into preserving your purchasing power by just having some physical gold. Now, if you are wondering why gold keeps rising in this inflationary environment with negative real interest rates, it's because people don't trust that their cash returns will beat inflation and maintain purchasing power. It's as simple as that. In 2025, gold went up 65%. And of course, in 2025, inflation was not 65%. Therefore, what is going on? Because a lot of people believe that gold is just an inflation hedge. Okay, yes, inflation does cause financial asset inflation. And you can think of that as your safety nets if you're investing in gold. However, there are other factors pushing up the price of faster than inflation is. You know what it is? It's the central banks and other governments around the world. They are buying physical gold and they are not stopping anytime soon. Why? I want to explain it to you like this. You and me, we need to work to earn a dollar. Many Americans dread going to work. They sacrifice their time away from family, from friends, hobbies, passions, just to be somewhere and do something that they would prefer not to do. In order to provide a roof over their heads and food on the table, right? But if you're a central banker, if you're a politician, or if you're a friend or family or associate of one of those, then they don't got to go through all that. All they got to do is push a few buttons to make millions or billions of dollars. So you and I work, they don't. They just push some buttons and they're going to walk away with a ton of money. I mean, it's very straightforward. It's like, oh, hey, politician, you're my friend. Can you give me this $2 billion defense contract? And the politicians are like, oh yeah, sure, buddy. Have fun with your $20 million bonus for securing this contract. You want to open up a fake daycare? Well, sure. Take $3 million. Just make sure that you vote for me. Tell your friends too. So let me ask you, how does that make you feel? I don't know how you feel, but for me, I feel that's unfair. You and I, we bust our asses while they scam us and they think they're so clever. Now, do you think that the Federal Reserve and the US government are playing this game with just us, like the people of the United States of America? No, they're not. They're doing the same exact thing to other countries. Give us your resources, give us your human labor, and we'll print some dollars for you. It's unfair and other countries don't like it either. And let me tell you, what really triggered them, the rest of the world, is when we decided to freeze $200 billion of Russia's reserve assets in Brussels, Belgium in 2022. Another $28 billion of Russia's reserves frozen in Japan, $31 billion in the UK, and more billions in Canada, France, Switzerland, and the US. After that, why would any country that is not on good terms with the US want to hold US dollars in their reserves if they can be frozen instantaneously? So no, they're not going to do that. They're going to want gold. And do you think that they're going to have a change of heart anytime soon? I don't think so. If you're not a friend of the US and you get threatened or subject by sanctions, and if you are a friend of the US, then you just get threatened with tariffs. So other countries, they want to walk away from the dollar system and central banks around the world are turning to gold, increasing the demand for gold and pushing up the price. From the 1990s to the early 2000s, central banks were net sellers of gold. They didn't see the need to hold gold. Economies around the world are booming and there was a lower perceived need for a safe haven like gold. And during that time, relatively speaking, the US government was much more fiscally responsible. But after the great financial crisis post 2009, central banks have consistently become net buyers of gold every single year. Why? It's because in 2009, the world should have fallen into a great depression, like an economic depression, but instead we decided to print money like never before. We started quantitative easing. So the decision was that it's better to die a slower inflationary death than crash into an economic depression. Japan actually started QE, like the whole process in 2001. The Americans copied it and now it's become permanent policy. So that's because the people at the top, they realize how much money that they can make with QE, which is why we consistently see the wealth gap widening. Now you probably heard this claim before that in a gold bull market, so in a cycle, gold often rises about 8x or 8 times from its low to its peak. In the 2000s bull market, gold rose about 662%, so from roughly $252 a troy ounce to $1,923 a troy ounce. So it's a 7.6x move. So is 8x common? Historically, gold bull markets can be explosive and the moves, yeah, they can do 7x, 8x, or much more. Much more have happened. It just depends on the macro backdrop, the macroeconomic environments. So the real question becomes, what's that backdrop right now? Now I just want to tell you that the debt bubble, the debt crisis, that changes the ceiling, that changes the whole situation. And this is something that I covered in the Great Meltup series. In prior cycles, gold ran until inflation was defeated and real rates turned sharply positive. But of course, that came at the deep cost of economic pain. So I want you to think about the early 1980s. Policy was tightened so aggressively, and we cover this. The Fed Fund's interest rate touched 20%, and real yields, they rose, and the gold narrative completely flipped. But today, we're dealing with a world that has far more debts, public and private. And that matters because high debt levels is going to limit how far interest rates can go up before something starts cracking or breaking. With that being said, let's review the current environments. Will we print more money? Will the central banks with the Federal Reserve print more money? Well, they are actually printing more money as we speak. So that's going to be a yes. Will there be more interest rate cuts in 2026? Okay, with this current Powell regime, they're saying that they're going to cut interest rates one more time this year. But that's with Powell. Trump's going to put his nominee in. We don't know who that is so far. We're going to know very shortly. But whoever it's going to be, they're going to drop interest rates aggressively, much more than Powell would. So will there be more interest rate cuts in 2026? Yeah, the answer is going to be yes. And then are countries swapping reserves from dollars to gold? That's a yes. Will there be more geopolitical tension? I mean, tell me what you think. I think that that's going to be a yes. And do central banks continue to buy gold? And that's a yes. Listen, gold is about $5,000 an ounce right now, a troy ounce. If gold goes to $8,000 in this cycle, then I'm telling you that would be normal. But this time, personally, I believe that's going to go higher. I expect more than $8,000 because this is not a regular cycle. This is a super cycle. And this is key. It's not because it's different this time. That's not what I'm saying. It is not different this time. We are actually repeating history. This happened to the Roman Empire. It happened in Weimar, Germany, which is the chart right there. And it happened in Zim. It happened in Venezuela. And I still have the old fiat currency from Venezuela, the bolivares, the VEF, where I had to literally carry a backpack full of their fiat currency just to buy me some french fries that were made of yucca, which is disgusting, by the way. But that's all thanks to the Maduro diets. So I was there in person. I witnessed with my own eyes a fiat currency hyperinflate and just collapse. But before the currency collapsed, years prior, it was 4,000 bolivares to buy an ounce of gold, 4,000. And then by 2018, it was 200 million bolivares to buy an ounce of gold. So this chart is Weimar, Germany. And it's the same thing with Venezuela. It's the same thing with every fiat currency in the history of human civilization. There are gold bull runs. There are super cycles. And then there are collapses. So I don't think that we're going to collapse this decade. However, if you just wait a few years, gold's going to go up to 25,000 an ounce. It's going to go up to 100,000 an ounce. It's going to be inevitable. So I just want to end with this. My message is very simple. The first thing is that the fiat currency system is failing. This is a 50-year experiment gone bad. It's coming to an end. It's going to be over. I mean, the whole concept is just these pieces of cotton and linen backed by nothing. They could print it out of thin air and exchange it for real good. This whole concept is just ridiculous. It's a failed experiment. The second thing is that the failure is not an event. It is a process. It takes time. And it's playing out right now. Sure, there's some events like the Russian events back in 2022. That's going to accelerate the whole process. But regardless, it's still going to take some time. The third thing is that transactions will still take place in fiat. So it's not like the dollar is going to go away. Transactions will be in fiat, but savings will be in gold and hard assets, real assets. And the it is not too late to get into gold. If you want to see what I'm doing with my gold, my silver, my stocks, then please check out my Patreon. I'm going to leave a link for you down below. I always post what I'm doing before I do it. Thank you so much. Please subscribe and wish you a very nice day. Take care.