Do you remember the bank reports that said gold was a bubble at $4,000?
Today, gold exceeds $4,900 per ounce...
So where did those predictions go?
The most important question is not why gold has risen, but:
Why were banks originally concerned about its rise?
Why are banks afraid of high gold prices?
Because the rise in gold prices is not just a market movement...
But a message of lost trust.
When gold rises:
•This means that investors do not trust government bonds.
•And when bonds lose their appeal, yields rise.
•And when yields rise, bond prices fall.
•And when bond prices fall… banks incur losses.
And here lies the crux of the problem.
🔹 Commercial banks are the largest holders of government bonds
🔹 They rely on it to cover their obligations
🔹 Any drop in its value pressures their budgets
Gold versus the banking system
There is a point no one likes to talk about:
When people buy gold:
•They do not deposit their money in banks
•They do not buy complex financial products
•They do not engage in derivatives betting
•Money leaves the banking system
And this is completely at odds with the banks' business model.
Therefore:
•Banks do not like gold
•She doesn't like its height
•And she doesn't like the idea that people store value outside the system
Why do they always attack gold?
Because they prefer to:
•They buy bonds
•They buy funds
•They engage in structured products
•They rely on 'smart financial management'
Instead of holding a simple… silent… unprintable asset.
The truth they do not want to say
Gold cannot be a bubble.
Why?
Because it is not an investment asset in the traditional sense.
Gold is:
•A measure of value
•A hedging tool
•A mirror of lost trust in paper money
And the logical question:
How can 'value' itself be overvalued?
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Summary
The rise in gold does not mean that gold is expensive…
It means that money is losing its value.
And the more pressure on the financial system:
•There was an increased demand for gold
•And attempts to question it have increased
•And campaigns to scare against it have risen
But history says one thing:
Gold does not disappoint those who understand its true role.