Earnings360 Newsletter for 6/27/2024

For the first time in decades, central banks hold more gold than U.S. Treasuries—a global gold rush is quietly underway inside the world's most powerful financial institutions as nations that once parked their reserves in U.S. Treasuries are souring on America's bloated debt that's hurtling toward $40 trillion. Foreign central banks are quietly, methodically buying gold and selling Treasuries, and under consideration at the Bank for International Settlements are new Basel regulatory rules that would formally reclassify gold as a Tier 1 high-liquid asset, meaning gold would once again be recognized as money by the global banking system. Three forces are converging for the first time in history: the U.S. racing toward $40 trillion in debt, the world's central banks choosing gold over Treasuries, and global banking regulators on the verge of formally reclassifying gold as money—Porter calls it The New Bretton Woods.