Global Trust Meltdown Ignites Unprecedented Surge in Gold & Silver Demand

Erosion of Trust Among Nations is the Perfect Habitat for Gold and Silver's Meteoric Rise.

by Jon Little’s intern
Sir Carmine Lombardi

Gold has gone from $2,350 to a meteoric rise of $3,358 in only 12 months (yet Gold’s Bull run has not even begun)

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Gold closed at a record high on Friday, May 23, 2025, surging to $3,340.99 per ounce, capping a week of robust gains fueled by a weakening U.S. dollar and mounting concerns over America’s fiscal outlook. This historic milestone is not a fluke. It is the latest chapter in a powerful, global momentum shift—one led by central banks, whose appetite for gold has reached levels unseen in decades. In 2024 alone, central banks added 1,045 tonnes to their reserves, marking the third consecutive year of buying above the 1,000-tonne mark. The world’s monetary authorities are not just diversifying—they are voting with their vaults against the U.S. dollar.

Why the U.S. Dollar Will Continue to Fall

1. Erosion of Trust Among Nations

The dollar’s decline is not merely a story of tariffs or trade policy. It is rooted in a profound lack of trust among nations. In 2025, eleven countries—primarily from the Commonwealth of Independent States—announced plans to abandon the dollar for international transactions, citing a desire to reduce dependency on Washington and escape the reach of U.S. sanctions. The dollar’s role as the world’s reserve currency has always depended on global confidence in America’s stewardship. But the weaponization of the dollar through sanctions and asset freezes has pushed countries to seek alternatives, with gold emerging as the ultimate neutral reserve—immune to political manipulation and seizure.

2. Global Debt and the Flight to Tangible Value

The world is drowning in debt: global obligations soared by $15 trillion last year, reaching a staggering $313 trillion. The U.S. national debt alone is on track to hit $37 trillion by September 2025. As fiat currencies are debased by relentless deficit spending and money printing, gold’s appeal as a store of value only grows. Central banks, acutely aware that “you can’t print gold,” are recalibrating their reserves. In 1950, gold accounted for 72% of central bank reserves; during the Nixon era, it was 38%. Today, it’s just 18%—leaving enormous room for further accumulation as nations seek to anchor their monetary systems in something real.

3. Gold Is Sanction-Proof and Politically Neutral

Gold’s physicality is its superpower. Unlike digital assets or foreign currency reserves, gold stored domestically cannot be frozen by hostile powers. In an era of escalating geopolitical tensions and economic warfare, central banks are repatriating and stockpiling gold as a bulwark against sanctions and financial isolation. The recent acceleration in gold buying by emerging market central banks—especially those most exposed to U.S. policy risks—underscores gold’s unique role as a safe haven.

The Bull Run Has Only Begun

Despite gold’s meteoric rise—up over 25% since the start of 2025—the bull run is still in its early innings. Retail investors, the traditional engine of late-stage rallies, have yet to pile in en masse. In contrast, the crypto market has already seen retail FOMO (fear of missing out) ignite new highs. Gold, by comparison, remains under-owned by the public, suggesting significant upside potential as the narrative of dollar decline and gold resurgence gains traction.

Moreover, the world has not yet witnessed the kind of black swan event—such as a cyberattack or EMP—that could cripple digital assets and drive a wholesale flight to physical gold. Nor have we seen the full fallout from the unresolved financial excesses of the past decade. The looming commercial real estate crisis, with nearly $1.2 trillion in loans maturing amid higher rates, threatens to trigger a new wave of bank failures and systemic stress. Each of these risks adds fuel to gold’s ascent.

The Road Ahead: Gold’s Share in Reserves Has Room to Run

Central bank gold reserves, at roughly 18% of total foreign assets, remain far below historical benchmarks—38% in the Nixon era, 72% in the 1950s, and a staggering 90% during the Great Depression. While a return to Depression-era levels is unlikely, the current trajectory suggests central banks will keep buying until gold’s share approaches at least the Nixon or 1950s benchmarks. With the dollar’s vulnerabilities laid bare, and with U.S. fiscal policy showing no sign of restraint (the latest “big beautiful bill” adds another $4 trillion to the tab), the structural case for gold has never been stronger.

Even Scott Bessent, the new Treasury Secretary, sidestepped the dollar’s weakness by claiming that “other currencies are just getting stronger”—a tacit admission that the greenback’s decline is structural, not cyclical. As central banks continue their historic buying spree, and as the world’s trust in fiat erodes, gold’s momentum is not just intact—it is accelerating. The rally is far from over.

Trump is Gold’s Best Friend (Not because he is advocating for sound money but because Gold soars to the moon when people distrust the system)