Episode summary
Dylan Jovine | 5 Reasons Gold Is Soaring: Why the Dollar Is Losing Power
Summary
Gold has crossed $5,000 an ounce, and Dylan Jovine argues that the move reflects a deeper shift in global finance rather than simple market excitement. He ties the surge to a weakening U.S. dollar, lower interest-rate expectations, central bank buying, expensive equities, and momentum-driven demand. His core claim is that investors and institutions are reducing dollar exposure because they no longer trust the U.S. to remain fiscally disciplined.
Jovine says his 2022 report, The Death of the Dollar, anticipated this trend: foreign holders would dump U.S. Treasuries and dollar-denominated assets, central banks would hoard gold, and a rival gold-backed currency would emerge. He says those predictions are now visible in real time, citing a decline in the dollar’s share of global reserves from 65% to 40% and pointing to China and Russia’s BRICS-style unit as evidence.
He also highlights Wall Street’s changed posture, saying Morgan Stanley and Goldman Sachs have raised their gold targets to 6,000 and 5,400 respectively. For Jovine, the broader warning is that losing reserve-currency status would raise costs for the U.S. and mark a major break in the postwar financial order.
Key takeaways
- Dylan Jovine says gold above $5,000 reflects a structural loss of confidence in the U.S. dollar, not just short-term speculation.
- He claims the dollar’s share of global foreign currency reserves has fallen from 65% to 40%, a level he says is unprecedented this century.
- Jovine says his 2022 call that central banks would buy more gold and dump dollar assets has played out in the last two years.
- He says Morgan Stanley and Goldman Sachs have turned bullish late, lifting gold targets to 6,000 and 5,400 an ounce.
- Jovine argues that fiscal deficits and sanctions have accelerated the shift away from dollar reserves toward gold and rival currencies.
Notable quotes
“Gold crossed 5,000 an ounce. It is the highest it's ever been”
“I predicted central banks would continue to hoard gold and they've bought more gold in the last two years than in the previous decades like two decade combined”
“The US dollar share of global foreign currency reserves has dropped from 65% to 40%, the lowest”
“gold is now taking the place of the US dollar as a reserve currency”
“We are living in interesting times, ladies and gentlemen”
How the episode opens
Good morning. This is Dylan with Behind the Markets. Happy Tuesday.
Today is Tuesday, January 27th. And we are going to continue to talk about gold. 5,000.
Gold crossed 5,000 an ounce. It is the highest it's ever been. We're going to talk a little bit about gold.
Talk a little bit about the dollar, you know, because they're very, very related. And those of you who've been with us for a while remember that in 2022 we wrote a report the death of the dollar China attacks the US dollar basically and in that report I predicted China would continue to dump US treasuries and dollar denominated assets and they've dumped a hundred billion dollars worth and other countries have really dumped hundreds of billions of dollars worth. I predicted central banks would continue to hoard gold and they've bought more gold in the last two years than in the previous decades like two decade combined.
And finally I predicted that you know a goldbacked rival to the US dollar and now China and Vladimir Putin has unveiled the unit something called the unit which is basically a bricks currency that is 60% their currency 40% backed by gold. These things are happening in real time. And gold is at 5,000 an ounce and Morgan Stanley has quietly moved from sell gold, it's not going to go higher to I think they raised their price target to 6,000 an ounce and Goldman Sachs raised it to 5,400 an ounce.
And what is behind this change in gold? It's basically there are five big reasons. There's five big reasons.
The first one I want to touch on is basically what I've been talking about since 2022, which is that institutions around the world and in the United States are reducing dollar exposure.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- gold price breakout
- us dollar weakness
- global debt
- reserve currency shift
- central bank gold buying
Companies and tickers mentioned
- MS
- GS
- Morgan Stanley
- Goldman Sachs
Watch the episode
Watch “Dylan Jovine | 5 Reasons Gold Is Soaring: Why the Dollar Is Losing Power” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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