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 and it's not only you know the usual suspects like turkey China India and so on Singapore has been buying gold um the Polish Central Bank said they want to double their gold reserves up to 600 tons so it is really a broad Trend that we are seeing when it comes to Central Bank purchases I it feels like they're getting ready for an end [Music] game hi and welcome welcome to this video we've got Ronnie stoet from in incrementum ag again with us Ronnie how are you doing hi Mike good to see you

how are you I'm doing great and uh this is sort of continuation on your show your Showdown and this is part two East versus West from your uh Dubai precious metals conference uh presentation so uh take us through this was a great presentation because you really nail with just a a series of three or four charts in each section of your presentation and uh it really shows you where things are going so uh balance of power tell us about this yeah well Mike you know this this topic East versus West that's uh we we've seen that

throughout history you know Alexander the Great versus Darius of Persia we've seen it with the Crusades we've seen it of course Cold War we all remember the rocky m movie you know Rocky Balboa versus Ian Drago so so this is a topic that um that we've always seen over history and if you have a look at this chart um it seems that we're really seeing um some sort of a showdown between the saturated establishment in the west and the hungry upstarts in the East you know emerging market so so I

think the bricks the bricks States uh which have in 2020 taken over the G7 nations in terms of share of global GDP I think that's that's a great example for that now as we've seen this year in summer at the last brick Summit um there will be six new members joining the bricks it's Argentina Egypt Ethiopia Iran Saudi Arabia and the United Arab Emirates so so this will probably even accelerate that development and those countries are from a geostrategic IC point of view you know for example 50%

of all oil exports they're very very important and and and I think it's it's a little bit like this you know the small brother is growing up and becoming stronger and stronger but the big brother doesn't really realize it yet and he doesn't really take it um take it seriously but it is happening and and I think Mike that gold also plays a major role when it comes to this development yes it it definitely does and that shows with uh the uh bricks country's accumulation of gold so um

this this is uh very very interesting uh it's something that I've been uh back in about uh 2009 I started giving presentations uh about the death of the global dollar standard it's a very very slow process but it is happening and the bricks country here are playing a major role in it so um what have we got here well that's that's a screenshot from Twitter and it it caused quite a lot of excitement over summer um yeah you know it it it came from um the Russian Embassy in Kenya um where they

announced that the bricks countries are planning to introduce a new trading currency which will be backed by gold and I I said well hold your horses we should take it with a grain of salt but I think if we really dig into the growing importance of gold for the bricks I think it is really evident that gold plays a major role for bricks and that's what we can see on the on the next chart Mike if if you well one of the things it does say here is trading currency and so yes the gold uh may be something for central bank settlement

basically not a a completely backed uh gold backed currency so okay Central Bank gold purchases interesting I mean that's really uh we we're always quite harsh when it comes comes to central banks but then actually when it comes to to Central Bank gold purchases um they're actually on our side so um if you have a look at this chart um we we're seeing that that Emerging Markets have increasingly built up gold reserves uh and also reduced dollar Reserve since 2008 but now it seems that this momentum has really

accelerated so last year 2022 central banks increased their purchases by 152% to more than 1,100 tons this was an all-time high and since the beginning of the year um so for the first nine month they have already purchased more than 800 tons so it seems that they're really keeping up with this momentum now the question is what was actually the trigger and from my point of view the trigger was clearly the decision of the western worlds in in February 2022 to freeze the dollar and the Euro reserves of the Russian central

bank so I think Mike this will really go down in monetary history because we've already seen sanctions against uh you know Pariah States like like Venezuela Iran if Afghanistan but never before we've seen such monetary sanctions against you know a state with veto power in the UN Security Council um a major nuclear power and probably one of the most important importers of raw materials and especially oil so I think this is kind of demonstrates to many many countries um all along the world

all over the world that that US dollar reserves can very quickly transform from from a highly liquid asset to basically useless pieces of paper so so I think this is basically so this surge in Central Banking it clearly shows the erosion of trust in institutions and the rule of law that we've seen and I think that many central banks uh especially from Emerging Markets will probably reconsider the allocation of their reserves so so I think that gold will probably be one of the key beneficiaries

of this conflict that we're seeing um between the East and the West yes uh it does look in this chart like they are definitely getting ready for something uh they they the central banks here this last bar on here so um all-time high and this doesn't even include the third quarter right no this is just for for the for the whole year um 2022 2022 compl last year that's yeah that's that's yearly so 2023 is not included here yet but it's it it seems that we're we're uh on similar levels

and actually there was like lots of lots of central banks and it's not only you know the usual suspects like turkey China India and so on Singapore has been buying gold um the Polish Central Bank said they want to double their gold reserves up to 600 tons so it is really a broad Trend that we are seeing when it comes to Central Bank purchases I it feels like they're getting ready for an end game so uh what what do we have here bricks are most significant consumers of gold hi I just wanted to take a moment

and thank you for subscribing and mention that if you'd like to help our Channel please consider my company goldsilver.com the next time you buy precious metals we're one of the most trusted names in the industry our prices are sharp delivery is fast and we have an insiders program where you find out exactly what I'm doing with my own Investments thanks for making goldsilver.com your dealer and now back to the video yeah I think it's it's it's I think it's important you

know um I I just came back from from Dubai and and and I did a presentation there and also a seminar for for the DU by gold exchange um and I talked to you know gold Traders investors from Turkey from China from India from from Dubai from Saudi Arabia and it's really really mindblowing how how different the attitude is when it comes to Gold that for them actually gold is I mean there's no question if you allocate gold um uh for those countries and I think just just a couple of numbers um to to to

highlight how important Emerging Markets actually are for the gold market just China and India they were responsible for for 28% of uh Global gold consumer demand in the year 2000 now their share is 50% India has imported 177,000 tons of gold over the last two decades at the moment just private hands in India are estimated to hold 29,000 tons of gold which is more than the combined gold Holdings of the top 27 27 central banks uh in the world China also really important they imported 18,000 tons of

gold and let's not forget they're by far the largest gold producer now many people say well of course you know the People's Bank of China still has a very very low um uh gold holding slightly more than 2,000 tons but recently there was a Chinese official and he was asked how much gold actually China has and he said and I thought that was really really important he said China owns gold through its people I thought this was a very very interesting comment so I think what's really important Mike is um we we should

be much much more open and we should actually um um you know talk about this enormous amount of gold demand and the gold Affinity from Emerging Markets much more because actually they are more and more becoming more and more important for the price of gold yeah um you know I I think uh this was actually one of your charts that you did while a while ago maybe it was uh Tavi Costa I can't remember but I believe it's 71% of uh us investors have absolutely no exposure to Gold whatsoever none and uh you just

made a great comment China uh has exposure to Gold through its citizens basically and uh I I think you know we've been talking the last um few videos seem to point toward this uh currency crisis that I do expect in the future there's uh it almost looks like central banks are getting ready for some sort of big huge reset and the gold is the um you know they raised it to a tier one asset which is silly it is the only foundation I mean it's a tier zero it's the one that can't vanish uh uh all of

the treasuries and things can vanish in uh central banks and so uh the their the central banks are uh increasing the solidity of their Foundation so uh what have you got here with the Renaissance of gold as Central Bank asset yeah that's that's actually one of my favorite charts and it's it's it's U tabi Costa built that um oh really and I think it's it's it's it's it's really interesting because I think we we might be seeing some sort of a Renaissance of

gold as our Central Bank asset so as you can see here on this chart the percentage of um um uh Global Central Bank gold Holdings as a percentage of foreign reserves and then fiveyear rolling gold purchases so so it seems like you know in the 1980s gold was actually 75% and even more to some degree um of of Central Bank uh uh foreign Reserve Holdings now then as you can see here the great moderation followed we we basically saw um four Decades of falling inflation rates uh you know we saw Decades of very low macro volatility we

saw that you know Central Bank has become became much more important we all remember the Maestro Ellen Greenspan and you know the um Central Bankers were being treated like like high priests um but but my thesis is and we talked about this uh in our previous in Gold trust report at length that this great moderation is over and I don't know if you're familiar with the world of professional wrestling Mike but there is a so-called heel turn do you know what that is no that's actually when the bad

guy the bad guy becomes the good guy um there was a wrestler called uh The Rock he used to be the the bad guy and he played this role really well so so so you know the audience said he has to become the good guy we actually like him and this is called this this is called Hilter and I think we might be seeing such a heel turn when it comes to Gold um as a central reserve for um for central banks so I think we'll probably not go back to 75% um but we could easily double to 40% um percentage of of of of global

Central Bank gold hover leagues over the next decade so my take is that gold is slowly but surely coming back as some sort of a neutral Reserve asset uh and then that's that's I think really a very very important long-term Trend that we're seeing here it is uh I do want to you know the the bottom portion of this graph is uh gold purchases so it's sales and purchases inflows and outflows out of central banks but it doesn't actually take any more gold purchases for the price for the percentage to go from 20

to 40 it just takes the doubling of the gold price and not accumulating any other sovereign debt not accum accumulating more foreign bonds now during this period of time that great moderation area was also I I would Al I would also dubb that sort of the great faith in Central Bank fiia currencies era uh and now that heel turn the 2008 was a a point of where central banks started not to trust their own system and so we see all those purchases that green area after the heel turn that is uh basically a picture of central

banks not trusting their own system that they're running and they're adding to a foundation that they know is solid that can't vanish so is is that the final chart in this series or do we have one more that's the final chart we we always with analogies from sports or from professional wrestling okay excellent well I want to thank you so much for sharing all of this with us it was very enlightening and there is a third part that we will probably do in an upcoming video so I want to thank everybody for watching and

I want to thank you for PR presenting all of this Ronnie thank you Mike always a pleasure hi I just wanted to tell you about gold Silver's 111 oce silver giveaway where you can winwin win 111 one 1 oz silver bar one 10 oz silver bar and one 100 oz silver bar so enter today and win