Sam Ching @yungsamching - Twitter Profile

The talk of the global financial world right now is gold. The yellow metal has gone parabolic, up more than 60% year to date. For two straight months, it has been on an absolute tear. Prices have ripped through $4K/oz like butter as lines form outside gold dealers from London to Tokyo to New Delhi. People are literally standing in the streets for hours to buy coins, bars, anything they can get their hands on. It is a mix of fear and FOMO along with the creeping realization that fiat currency itself is being debased. Gold now makes up 6% of all global investable assets, its highest share since 1986. Back in 1980, during the last true gold bubble, that number hit 22%. Two decades later, at the peak of Pax Americana, it fell to just one. Now it is climbing again. What is odd is that the dollar is relatively steady. Oil is falling. Long-term Treasury yields are slipping. This is not what you would expect in a typical inflation-hedge rally. Gold does not surge like this unless something underneath the surface is radically shifting. These kinds of moves appear before monetary regime changes. Late 1979, when confidence in the dollar first cracked. 2008, when the credit system collapsed. Early 2020, when the world went into a virus-induced panic. Each time, gold was the first to see it coming. And yet, Bitcoin is still asleep. If this is really the debasement trade, why is Bitcoin not moving? Because behind the scenes, this is about nations getting their ducks in a row for a new order. China is hoarding physical supply, including gold, silver, and rare earths, anything tangible that cannot be sanctioned or defaulted on. India is buying too. And they are buying gold because, to them, the geopolitical risk is the United States. Over the last decade, we have seen this play out before. Gold runs first as the system quietly shifts into crisis-prevention mode before the event hits. Then, when policymakers lose control and are forced to print, Bitcoin takes the lead. There have only been four times in history when Bitcoin was this undervalued relative to gold. Each one marked a generational bottom. We just hit that level again. In the summer of 2020, gold topped and Bitcoin launched from $10K to $50K. Gold is showing us that faith among sovereigns in the dollar standard is eroding. And when the next policy pivot arrives, Bitcoin will be the cleanest, hardest escape vehicle there is. Because despite one being physical and the other digital, Bitcoin still has one absolute advantage over gold: absolute scarcity. Approximately 67% of the world’s gold supply has been mined since 1950, with total gold holdings increasing from 72,000 tonnes to 216,000 tonnes in the last seventy-five years. There will only ever be 21 million Bitcoin. Gold is telling you the storm is coming. Bitcoin is still whispering. But soon, it will not be whispering anymore. And by then, you will be upset if you didn’t take advantage of this opportunity.

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