Gold or Dollars? It's a Question of Trust! -

The debasement trade continues to gain momentum with more countries and investors spurning dollars for gold.
It's a question of trust.
Do you trust dollars, or gold?
As host Mike Maharrey explains, more people are losing faith in fiat dollars, and they're turning to the yellow metal as a safe haven for their wealth. In this episode of the Midweek Memo podcast, Mike highlights two stories that broke last week, illustrating the whats and whys behind the debasement trade. 
First, he covers the world's largest sovereign wealth fund announcing a reduction in Treasury holdings. He follows that up by highlighting another example of gold repatriation. 
Along the way, he makes the case for a "forever" gold bull market.
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Mike opens the show with a hypothetical scenario. 
<blockquote>
"So, you’re chatting with a trusted friend, and he tells you about how he discovered his accountant was cheating him and embezzling funds. And oh, by the way, he’s your accountant too.
"So, how long would it be before you fired him?
"Probably about as long as it took to dial the number, right? If you can’t trust somebody, you are not going to keep them in a position where they can harm you. A cheating accountant is bad, but not so bad for you if he’s not YOUR accountant.
"This very phenomenon explains the debasement trade."
</blockquote>
What exactly is the debasement trade?
<blockquote>
"Simply put, it’s an investment strategy emphasizing holding tangible assets such as gold, silver, and other commodities to protect against the decline of fiat currencies caused by monetary debasement. In other words, getting rid of dollars because you don’t trust the government issuing those dollars and stacking gold and silver because nobody issues or controls it, and you know it will always hedge against fiat currency debasement."
</blockquote>
Mike notes that people sometimes ask him how long he thinks the gold bull market will continue.
<blockquote>
"If you know me, you know I’m not one to try to time things. I recognize trends, and I feel like I have a good grasp on where we’re going, but I always admit it’s not clear exactly how or when we’ll get there. But I ran across a forecast the other day that I have to admit makes sense."
</blockquote>
He quotes an analyst who argues the gold bull market will continue until "we learn how to deal with the debt situation."
<blockquote>
"So, Forever. Given that nobody is willing to do what it takes to 'deal with the debt situation,' gold prices will ostensibly go up forever, or until the fiat system finally implodes."
</blockquote>
Mike explains that there is no viable off-ramp, and this is the root of the debasement trade. 
<blockquote>
"Remember – there’s a growing lack of trust. People don’t trust the U.S. to handle its fiscal problems, so they’re trying to figure out how to be clear of the mess when the house of cards falls down. One of the things they’re doing is limiting their exposure to U.S. debt. In other words, they’re increasingly saying, 'Yeah. We’re not loaning your drunk uncle any more money.'"
</blockquote>
As an example, Mike points out that the World's largest sovereign wealth fund recently announced plans to lower its exposure to government bonds. In practice, this means it will divest a large amount of U.S. Treasuries.
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Mike called the move "yet another body blow" to the struggling bond market, noting that many analysts believe we are in <a href="https://www.moneymetals.com/news/2026/07/18/the-ramifications-of-a-long-term-bond-bear-market-005079">the early stages of a long-term secular bear market in bonds</a>.
Mike sets the Norwegian wealth fund's move in a broader context.
<blockquote>
"For decades, governments and central banks have held U.S. government debt as a “safe” asset. That is starting to shift because many governments no longer view U.S. debt as 'safe.' They are concerned about the U.S.’s fiscal position, with <a href="https://www.moneymetals.com/news/2026/07/16/us-government-runs-another-big-deficit-in-june-as-interest-expense-climbs-005073">constant deficit spending</a> piling onto nearly $40 trillion in debt, along with the <a href="https://www.moneymetals.com/news/2024/02/29/could-weaponization-of-the-dollar-as-a-foreign-policy-billy-club-accelerate-de-dollarization-003013">weaponization of the dollar</a>. Notably, de-dollarization went into overdrive after the U.S. and its Western allies froze Russia's dollar-denominated assets after the invasion of Ukraine."
</blockquote>
Mike points out that this has significant ramifications, and the U.S. government is signaling that it's a big problem. Mike specifically notes <a href="https://www.moneymetals.com/news/2026/08/20/us-treasury-intervenes-in-bond-market-to-drive-yields-lower-005150">the Treasury Department's recent bond buyback announcement</a>, characterizing it as a sign of "desperation" as the federal government wrestles with the growing burden of interest expense on the $40 trillion debt.
After pointing out special pricing on Australian gold Kangaroo coins at Money Metals, Mike highlights a second aspect of the debasement trade – gold repatriation. 
<blockquote>
"So, not only are a lot of countries shedding dollars and adding gold – they are bringing their gold home. The Netherlands moved approximately 86 tonnes of gold valued at over €10 billion from North America to London, citing 'increasing geopolitical unrest' and a desire to 'strengthen crisis preparedness.'"
</blockquote>
Mike notes that, based on the DNB’s statement, worries about access to its gold were a primary reason for the move. He also points out that even countries with historically friendly relations, like the Netherlands, are beginning to judge the U.S. as a political risk. He cites France and India as two other countries aggressively repatriating gold, while people across the political spectrum in countries including Germany and Italy are pushing to return their gold to their own countries. 
Mike wraps up the show by pointing out that the reasons many countries are spurning dollars for gold are also valid to individual investors. He urges listeners to call 800-800-1865 and talk with a precious metals specialist today. 
<h2>Articles Mentioned in the Show</h2>
<a href="https://www.moneymetals.com/news/2026/09/01/a-forever-gold-bull-market-005174">A Forever Gold Bull Market?</a>
<a href="https://www.moneymetals.com/news/2026/09/03/central-banks-piled-in-more-gold-in-july-005182">Central Banks Piled in More Gold in July</a>

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