The Strange Movement of Gold and Its Geopolitical Consequences : FEBRUARY 2025

The Strange Movement of Gold and Its Geopolitical Consequences

Today, we will discuss a topic of great importance for understanding the future of the global economy and recent developments in the geopolitical landscape. We will analyze the actions of former President Donald Trump and a very unusual phenomenon currently affecting the global financial system, particularly the Bank of England.

An Unusual Phenomenon in Financial Markets

We are witnessing a highly unusual event: a sudden and massive mobilization of gold. The primary movement involves the withdrawal of enormous amounts of gold from the Bank of England, with many nations repatriating their gold reserves back to their respective countries. The United States, in particular, appears to be the primary beneficiary of this gold rush, and many analysts believe this is a sign of something much bigger on the horizon.

But why is this happening? What do the world's elites know that the rest of the population does not?

Gold as a Safe Haven in Times of Crisis

To better understand this phenomenon, it is essential to remember that during periods of economic crisis and financial instability, investors seek refuge in so-called “safe-haven assets”, which are assets that retain their value over time. Historically, the two main safe-haven assets have been:

Gold, due to its scarcity and intrinsic value.
The U.S. dollar, due to its position as the global reserve currency.

When markets begin to collapse, gold and the dollar tend to strengthen. This is because those with privileged information move ahead of the curve, pulling their capital out of risky investments and shifting it to safer assets.

An Impending Economic Crisis?

There are clear indications that the world may be on the brink of an unprecedented economic crisis, potentially more severe than that of 2020 or even the Great Depression of 1929.

For instance, during the 2020 crisis, the price of gold surged by 56%, signaling that investors were seeking protection.

Today, we see the same warning signs: major investors are moving en masse toward the U.S. dollar and gold. But there is an even more concerning new phenomenon: the United States is literally “siphoning” gold from all over the world, a strategy that we can refer to as the "Gold Milkshake Theory," similar to the Dollar Milkshake Theory (in which the U.S. attracts global capital to strengthen its economy and reduce debt).

Trump and the "Golden Age of America"

One of the most significant aspects of former President Donald Trump’s economic policy is his frequent reference to a "Golden Age of America."

At first glance, this phrase may seem like a mere metaphor for economic recovery and the resurgence of American industrial and financial power. However, many analysts believe that behind this declaration lies a much more concrete and strategic plan.

In fact, there is a growing possibility that the United States is seriously considering a return to a gold-backed monetary system, or at the very least, a policy that significantly strengthens American control over global gold reserves.

This scenario would align with Trump's broader goal of reinforcing U.S. economic sovereignty and reducing dependence on international financial institutions.

Trump's Strategic Goals and the Role of Gold

In his inaugural speech, Trump outlined several key points of his economic and geopolitical agenda, including:

Reasserting U.S. sovereignty and reducing the influence of supranational organizations.
Ending New Deal agreements and mandatory green energy policies, instead prioritizing an energy strategy favoring domestic resources like oil and coal.
Expanding American influence in space, linking to extraterrestrial mining projects for resources such as gold and other rare metals.
Protecting national economic stability by reducing the trade deficit and revitalizing the manufacturing sector.

If we connect these objectives to the rising accumulation of gold in the U.S. and the strategic repatriation of foreign-held reserves, the picture becomes clearer:

This may be a deliberate maneuver to consolidate America's economic and geopolitical power in preparation for a systemic global crisis.

Gold Accumulation and a Possible Return to the Gold Standard?

During his presidency and in subsequent speeches, Trump repeatedly emphasized the need to make the U.S. economy less dependent on dollar fluctuations and the decisions of the Federal Reserve.

Some experts speculate that behind the rhetoric of the "Golden Age," there is a well-orchestrated plan to amass large quantities of gold with the goal of:

Reaffirming the dollar’s position as the global reserve currency, reducing its dependence on a purely fiat-based system (which is not backed by a tangible asset like gold).
Shielding the U.S. economy from a potential global monetary devaluation, which could arise from the U.S. debt crisis or hyperinflation.
Preparing for an eventual return to the Gold Standard, or a modern version of it, to increase the stability of the U.S. currency and limit the Federal Reserve's power.
Gaining greater control over international gold reserves, ensuring that the United States remains at the center of the global financial system.

Is This the Dawn of a New Monetary Era?

If the United States is indeed strategically accumulating gold, the implications could be monumental:

A global liquidity crisis: With less gold available, financial markets could experience severe turbulence.
A devaluation of the fiat monetary system: If gold prices are artificially driven higher, fiat currencies could lose value rapidly.
Shocks in emerging markets: Countries with weaker economies could suffer significant consequences from reduced global liquidity.
A potential return to the Gold Standard: Some analysts speculate that the U.S. may attempt to introduce a new gold-backed monetary framework, altering the global economic landscape permanently.

The key question remains:

Is this just a defensive maneuver to prepare for a major financial crisis, or is the United States actively engineering a fundamental shift in the global economic order?

If these trends continue, we may soon witness one of the most significant monetary transformations in modern history.

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1 - Trump and His Ties to Pro-Gold Investors

It is no coincidence that Donald Trump has historically been closely associated with influential figures in the financial world who advocate for gold investment. Among the most notable names are:

Robert Kiyosaki, author of Rich Dad, Poor Dad, known for his strong opposition to the fiat currency system and his strategy of investing in physical gold.
Scott Bessent, an economist chosen by Trump to lead the U.S. Treasury Department, with expertise in commodity and gold investments.
Peter Schiff, an economist and entrepreneur, renowned for his predictions of economic collapses and his support for a return to the Gold Standard.

These names demonstrate that Trump is not alone in his vision of a financially independent America. Instead, there is a broader network of investors and financial strategists who see gold as a fundamental pillar for the future of the U.S. economy.

The "Gold Milkshake Theory" and U.S. Financial Domination

Another key element in this strategy is the so-called "Dollar Milkshake Theory", which suggests that the United States is actively siphoning global liquidity to strengthen its economy and protect the dollar.

This theory is now evolving into what some analysts call the "Gold Milkshake Theory", a strategy aimed at draining international gold reserves and bringing them under U.S. control.

In recent months, a series of events seem to support this hypothesis:

The massive repatriation of gold from London to the United States, with enormous shipments of bullion by financial institutions such as JP Morgan.
Increased gold withdrawal requests from the Bank of England, causing significant delays in processing withdrawals, which suggests an abnormal and intense demand for physical gold.
Growing political pressure in the U.S. for an audit of Fort Knox, the country’s primary gold reserve, to verify the actual amount of gold held by the government.

If Trump were to return to the White House, he could announce a financial reform that brings gold back to the center of U.S. economic policy, potentially upending the current fiat-based monetary system.

A Strategic Move Toward a New Economic Order?

Trump's rhetoric about the "Golden Age" may not be just a political slogan, but rather a well-orchestrated strategy to solidify U.S. economic dominance. The accelerated accumulation of gold, the revaluation of gold reserves, and greater control over global financial resources could be the first steps toward a new international monetary order.

If this scenario materializes, the implications could be enormous:

The fiat currency system could be seriously challenged, leading to a major shift in global finance.
The U.S. could gain a new competitive advantage over China and the European Union, reshaping international economic power dynamics.
Emerging economies could face an unprecedented crisis due to reduced global liquidity, making it harder for them to access capital.

The key question remains:

Is Trump’s administration merely seeking to protect America from an imminent crisis, or is it orchestrating a global economic revolution to consolidate U.S. power for the long term?

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2 - The Bank of England Case: The Heart of the Gold Crisis

The Bank of England has historically been one of the most influential financial institutions in the global gold market. Positioned at the center of the international monetary system, this institution holds one of the world's largest gold reserves, not only for the United Kingdom but also for numerous foreign nations that have deposited their gold in its vaults over time for geopolitical security and economic stability.

However, in recent years—and particularly in recent months—an unprecedented anomaly has emerged: many governments are requesting the repatriation of their gold reserves, leading to significant delays in withdrawals and increasing pressure on the Bank of England's ability to fulfill these requests within reasonable timeframes.

Why Are Countries Withdrawing Their Gold from the Bank of England?

Several factors are contributing to this phenomenon:

1. Increasing Global Financial Instability

The monetary system based on fiat currencies is becoming increasingly fragile. Rising inflation, escalating public debt, and geopolitical tensions have driven many nations to reduce their reliance on foreign financial institutions and bring their gold reserves under national control.

2. Crisis of Confidence in the Western Banking System

The 2008 financial crisis left a profound impact on global confidence in central banks. Countries such as Germany, Venezuela, Turkey, Hungary, and Poland have already repatriated large quantities of gold to avoid the risk of future restrictions or forced appropriations by foreign governments.

3. Historical Precedents of Reserve Freezing

A key event that has accelerated this trend was the freezing of Russia’s foreign currency and gold reserves by the United States and the European Union following the 2022 invasion of Ukraine. This move demonstrated that assets held in foreign institutions can be easily seized in case of economic sanctions, prompting other nations to secure their reserves before they become vulnerable to similar actions.

4. Gold Market Manipulation?

Some analysts argue that the Bank of England and other major financial institutions may have sold more gold than they actually possess, using a "paper gold" system through derivatives and futures contracts. If this theory proves true, it would mean that the demand for physical gold withdrawals exceeds the actual reserves available in London’s vaults, explaining the withdrawal delays.

Withdrawal Delays and Rising Tensions with Foreign Governments

Ordinarily, a gold withdrawal request from the Bank of England should be a swift and straightforward process, particularly for nations holding significant portions of their reserves in its vaults.

However, in recent months, waiting times have increased dramatically, with some countries experiencing delays of weeks or even months before receiving their gold.

This has raised serious concerns among financial analysts and government officials:

Does the Bank of England actually hold all the gold it claims to store, or is there an unfolding liquidity crisis in the physical gold market?

One notable example is Germany’s partial gold withdrawal. In 2013, Berlin announced plans to repatriate 674 tons of gold from London and New York. However, it took four years to complete the operation—a delay that sparked suspicions about the actual state of Western gold reserves.

The Role of JP Morgan and the Migration of Gold to New York

Parallel to the growing withdrawal difficulties at the Bank of England, financial institutions such as JP Morgan and other U.S. investment banks have been moving vast amounts of gold from London to New York.

According to The Wall Street Journal, the official reason for these transfers is the price discrepancy between London and New York. Traditionally, London has been the primary hub for physical gold trading, while New York is the center for gold futures and derivatives contracts. Banks claim that relocating gold to New York allows them to exploit price differences and arbitrage opportunities.

However, many analysts dispute this explanation, suggesting that a much larger strategy is at play.

Possible Explanations for the Gold Transfer to the U.S.

1. The U.S. Aims to Strengthen Control Over Global Physical Gold

The United States may be hoarding gold to fortify its monetary system and prepare for a potential collapse of the fiat dollar.

2. Preparation for a Global Financial Crisis

The rapid transfer of gold from London to New York could be a sign that major financial institutions are aware of an impending economic crisis and are securing their assets before the situation worsens.

3. Risks of Bank of England Insolvency?

If the Bank of England holds less gold than it officially declares, the U.S. may have intervened to "rescue" its financial allies, preventing a collapse of confidence in the international banking system.

An Unprecedented Event in the Gold Market

The Bank of England's gold withdrawal crisis and the mass repatriation of gold signal a profound transformation in the global financial landscape.

For decades, many nations considered it safe to store their gold in Western financial institutions, but today, this trust is rapidly eroding.

The Implications of This Phenomenon Are Enormous:

If the Bank of England cannot immediately return the gold to its rightful owners, it could trigger a confidence crisis in the international financial system.
The transfer of gold to the United States suggests that financial elites are preparing for a major event that could reshape the global economic order.
If demand for physical gold continues to rise, we could witness an unprecedented surge in gold prices, with devastating effects on fiat currency markets.

A Major Shift in the Monetary System?

The key question remains:

Are the United States and other global powers simply taking precautions against a future economic crisis, or are they orchestrating a radical shift in the global monetary system, with gold as the new foundation?

If this theory proves correct, we may be standing on the brink of one of the greatest economic revolutions in modern history.

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Global Implications

If the United States is indeed strategically accumulating gold to strengthen its economic position, the repercussions for the global financial system could be enormous and long-lasting. The return of gold as a central asset in the global economy would have implications ranging from the stability of fiat currencies to the liquidity of international markets, as well as the geopolitical role of the U.S. and emerging economies.

Here are the key consequences of this potential monetary shift:

1. Global Liquidity Crisis: The Risk of a Financial Squeeze

If the United States continues accumulating gold at this pace and other nations follow suit, there will be less physical gold available on international markets. This could trigger a liquidity crisis, where transactions based on gold-backed derivatives (ETFs, futures, and other financial instruments) would no longer be settled with physical metal deliveries.

The primary consequences of this crisis would be:

Difficulties for central banks in maintaining financial stability, as many of them hold gold reserves or use them as collateral for loans.
Rising global interest rates, as reduced gold liquidity would weaken trust in financial institutions, leading to a contraction in credit markets.
Collapse of the paper gold market, meaning futures contracts and gold ETFs could prove to be under-collateralized, sparking market turmoil.

If this liquidity crisis were to unfold, the global financial system could experience a wave of panic, similar to the 2008 financial crisis—but on a much larger scale.

2. Depreciation of the Current Monetary System: The End of Fiat Currencies?

One of the most immediate effects of the U.S. massively accumulating gold could be a devaluation of the fiat-based monetary system, meaning currencies whose value is not backed by physical assets but rather by government trust.

If gold prices are artificially pushed higher—due to growing demand from central banks, institutional investors, and governments—drastic consequences for the current monetary system could emerge:

Loss of trust in fiat currencies, with the risk of hyperinflation in some countries, especially those with fragile economies or high dependence on foreign debt.
Depreciation of the U.S. dollar and other major global currencies, leading to higher import costs and an increased risk of recession.
A surge in public debt worldwide, as central banks would be forced to print more money to maintain economic stability.

This situation could result in a global currency crisis, where both individuals and institutions lose confidence in traditional money and seek refuge in physical gold, cryptocurrencies, or other alternative assets.

3. Shocks in Emerging Markets: The Risk of a Systemic Crisis

Emerging economies would likely be the most affected by such a scenario. Many of these countries hold their debt in U.S. dollars and rely on the stability of the international financial system to attract investments and sustain economic growth.

If the global financial system becomes destabilized due to a gold rush, emerging markets could face severe challenges:

Capital flight, as investors shift toward safer assets like the U.S. dollar and physical gold.
Collapse of local currencies, since central banks in these countries would be forced to sell their U.S. dollar and gold reserves to defend their national currencies.
Increased debt costs, with governments and businesses having to pay higher interest rates to access international funding.
Possible sovereign defaults, particularly in countries with high external debt and limited ability to generate internal revenue.

Such a scenario could mirror the economic crises of the 1990s, when many emerging economies (including Mexico, Thailand, and Argentina) suffered financial meltdowns due to speculation and capital outflows.

Conclusion: A Fundamental Shift in the Global Monetary Order?

If the U.S. continues its gold accumulation strategy, the global financial landscape may experience one of the most significant transformations in modern history.

The key questions remain:

Are the United States and other financial powers simply preparing for an inevitable economic crisis?
Or is this a deliberate effort to engineer a radical shift in the global monetary system, with gold as the new dominant asset?

If these trends persist, we may be on the verge of a historic financial realignment—one that could redefine the very nature of money itself.

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4. Possible Return to the Gold Standard: A New Monetary Era?

One of the most debated theories among analysts is the possibility that the United States is laying the groundwork for a return to the Gold Standard, a system in which the value of the U.S. dollar (or other currencies) would be directly linked to the physical gold reserves held by the central bank.

If the United States were to take this step, the consequences would be revolutionary:

The end of fiat money as we know it, with a shift back to a currency backed by a tangible asset.
Greater economic stability for the U.S., which would solidify its position as a financial superpower, given that it would control a significant portion of the world’s gold reserves.
Devaluation of other currencies, particularly the euro, the yuan, and other fiat currencies that lack sufficient gold backing.
A shift in geopolitical dynamics, with a potential divide between countries adopting gold-backed monetary systems and those remaining tied to fiat-based economies.

A return to the Gold Standard would mark a historic turning point, fundamentally redefining the way modern economies function. However, there are many uncertainties regarding how such a system could be implemented and what the long-term repercussions would be for international trade.

Conclusion: An Inevitable Shift?

The U.S. accumulation of gold and the potential return to a more solid monetary system could be signals of a profound transformation in the global economy.

The possible implications include:

The world could witness a global liquidity crisis, with less gold available for financial transactions.
The fiat currency system could be challenged, leading to a surge in gold prices and greater monetary instability.
Emerging economies could suffer severe damage, facing recessions, currency crises, and capital flight.
The United States could consolidate its role as the center of the global financial system, imposing a new economic order based on gold.

The key question remains: Are we witnessing a simple market adjustment, or is a global strategy in motion to rewrite the rules of global finance?

If the current trend continues, the world could be on the brink of an unprecedented economic revolution, with the United States poised to redefine the future of money.

What Will Happen in the Coming Months?

Current events suggest that the next few months could bring a series of unprecedented economic and financial changes, many of which could redefine global balances.

By analyzing economic data, monetary policies, and geopolitical trends, experts predict major market turbulence, an incoming recession, and a potential realignment of the international monetary system.

Here’s a detailed analysis of what may unfold over the next 2-3 months:

1. U.S. Recession: A Decline in GDP and Rising Unemployment?

The United States could officially enter a recession in the coming months, with a decline in GDP driven by several factors:

Reduction in public spending: The U.S. government is attempting to reduce the deficit and contain public debt, which has surpassed $34 trillion. This austerity policy could slow economic growth and lower aggregate demand.
Higher borrowing costs: Despite inflation declining from its 2022 peaks, the Federal Reserve has kept interest rates high, squeezing both investments and consumer spending.
Contraction in the tech and financial sectors:
- Big Tech companies, which have been the main drivers of economic growth in recent years, are facing mass layoffs and investment cuts.
- The banking sector is under pressure, with several regional banks already declaring insolvency in 2023.
Global slowdown:
- The Chinese economy, a key driver of global growth, is experiencing a severe downturn due to its real estate crisis and weakening foreign demand.
- This directly affects U.S. exports, worsening economic conditions.

If these trends persist, GDP contraction could exceed expectations, significantly impacting the labor market, investment flows, and consumer confidence.

2. Gold Prices Soaring: The Safe-Haven Rush

One of the most direct effects of the recession and financial instability is the rising price of gold.

Analysts predict that gold could surpass $3,300 per ounce, with some scenarios projecting a surge toward $4,000 by year-end.

Key drivers of this trend include:

Growing economic uncertainty: Investors seek protection in safe-haven assets, and gold has historically been one of the most reliable stores of value during crises.
Massive accumulation by central banks: Nations like China, Russia, and India are buying gold at record rates, reducing their exposure to the U.S. dollar and fiat currencies.
Geopolitical tensions: Rising global conflicts and tensions between major economic powers could further drive demand for gold as a reserve asset.
U.S. dollar weakness: If the Federal Reserve cuts interest rates (see point 4), the dollar could weaken further, making gold even more attractive to investors.

If gold prices continue rising, we could see an acceleration of global de-dollarization, with more countries shifting their reserves from U.S. dollars to gold.

3. Housing Market Collapse: The Next Major Crash?

Another highly vulnerable sector amid the recession is real estate.

In recent years, housing prices have skyrocketed, fueled by low interest rates and speculative demand. However, with the Fed’s rate hikes, the market has slowed sharply.

Key factors that could lead to a housing market crash in the coming months:

A surge in unsold homes:
- Developers are completing projects launched years ago, but demand for new home purchases has dropped drastically due to high mortgage rates.
Declining household purchasing power:
- With worsening economic conditions, many potential buyers may delay home purchases, leading to an oversupply in the market.
A wave of mortgage defaults:
- If the recession leads to higher unemployment, many homeowners may struggle to pay their mortgages, causing a surge in foreclosures.
Speculative bubbles bursting:
- Real estate markets in California, Florida, and Texas have seen unsustainable price growth, making them among the most vulnerable to a potential collapse.

If these trends continue, the U.S. may experience a housing crisis similar to 2008, with disastrous consequences for the banking and financial sectors.

4. Major Interest Rate Cuts by the Federal Reserve

Faced with an impending recession, the Federal Reserve may be forced to drastically cut interest rates to stimulate the economy.

However, this move comes with significant risks:

A new wave of inflation: If the Fed cuts rates too soon, it could reignite inflation, making economic recovery even more difficult.
Weakening the U.S. dollar: Lower rates would make the dollar less attractive to global investors, potentially favoring other currencies, gold, and cryptocurrencies.
Fueling market speculation: Cheap money could lead to a resurgence of speculative bubbles in financial markets.

The Fed faces a difficult choice:

If it cuts rates too soon, it risks triggering inflation.
If it waits too long, it could worsen the recession.

5. Rising Political and Social Instability: Protests and Tensions Ahead?

The economic crisis could have serious political and social repercussions:

Extreme political polarization: U.S. political divisions are deepening, and a recession could exacerbate the conflict between Democrats and Republicans.
Rising inequality: If the recession hits the middle and lower classes hard, protests and social unrest could erupt, similar to 2008-2011 movements.
Urban crime spikes: With rising unemployment and worsening economic conditions, major U.S. cities could experience a surge in crime and instability.

Final Question: Are We on the Brink of a New Global Order?

If these predictions hold, the world could soon witness a historic realignment of economic and monetary power.

The U.S. and global elites are preparing for something major—but is it just a crisis, or the dawn of a new financial era?

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THE AUTHOR

Dr. Issor L. Onitsoga is a pseudonym adopted to maintain anonymity. An independent analyst and scholar, he possesses extensive international experience in geopolitics, finance, and emerging technologies, gained through academic and professional engagements on a global scale.

After earning a Master’s degree in Strategic-Military International Studies, he deepened his expertise in the interconnection between financial markets, cryptocurrencies, and geopolitical scenarios. His career has taken him to the United States, Africa, South America, Northern Europe, and Asia, allowing him to develop a truly global perspective on economic and strategic dynamics.

A polyglot and an expert in financial systems, Onitsoga offers a unique insight into global developments and future challenges.

With “The Great Financial Reset 2025”, he shares the results of his research to help readers understand and navigate the coming economic transformation.