The US Dollar Is Going To $0! - Gold Just Broke The Stock Market
Time Interval: 00:00:00 – 00:14:32
Summary
📉 Central banks protect banks, not you
The video opens with the argument that institutions like the Federal Reserve serve the interests of banks rather than individuals. This statement sets the tone for skepticism towards fiat currency and centralized financial systems.💰 Gold’s 2025 surge amid stock market chaos
Amid global economic instability, gold is booming — up 30% year-to-date and hitting its 55th record high in 12 months. While the stock market hemorrhages value, gold is being hailed as the “ultimate money printer.”🏛️ Gold’s historic credibility over fake money
Gold has served as a store of value for thousands of years. It’s durable, rare, and historically recognized as a reliable currency — unlike fiat money, which can be printed endlessly.📜 US dollar’s break from gold and consequences
A historical overview from the 1792 Mint Act to the 1971 removal from the gold standard reveals how the U.S. dollar lost its backing and became a belief-based currency. This shift caused gold prices to spike dramatically.📊 Performance comparison: Gold vs. other assets
Gold has shown solid performance: 8.3% annualized returns over 20 years, outperforming bonds and global stocks. It acts as a stabilizing force during crises, like the 1987 crash and the 2008 recession.🔄 Gold’s uncorrelated behavior with stocks
Contrary to popular belief, gold does not consistently act as an inverse to the stock market. It has sometimes moved in the same direction as stocks, especially during recent decades.📉 Long-term returns: Stocks still dominate
While gold outpaces in times of crisis, over the long haul (1980–2023), stocks returned 11.7% annually, significantly outperforming gold’s 3.2%. This suggests gold’s utility lies more in stability than wealth-building.🔮 Future price predictions for gold
Analysts like Jeffrey Gundlach and Goldman Sachs predict gold could hit 5,000 per ounce. These projections rest heavily on continued economic fears and devaluation of the dollar.⚖️ Strategic use of gold in portfolios
Gold should be used as a hedge — not a primary investment. A well-balanced portfolio might include 5–15% gold. The video stresses diversification across stocks, real estate, cash, Bitcoin, and treasuries.
Insights Based on Numbers
85x increase in gold vs. 85% drop in dollar value
Since abandoning the gold standard, the U.S. dollar’s purchasing power dropped 85%, while gold’s price soared 85 times — showing gold’s role as a value preserver.594 in 1980 (adjusted $2,445)
This explosion in value underscores how economic policy shifts can massively influence gold prices.From 1971–79: 1,300% gold increase
This extraordinary growth period shows how market manipulation and detachment from gold standards can trigger major asset revaluations.