American Association of Physicians and Surgeons Opines on … Gold

For my sins, I get emails from AAPS:

 central banks globally are buying gold, but since 2021, foreign official purchases of the U.S. Treasury bill, once considered the safest form of investment, have plummeted. Confidence in the U.S. as the world’s economic powerhouse is crumbling.

…

The article continues:

He suggests stocking up on emergency equipment and supplies. He warns that the destructive effects of ObamaCare are continuing, and that good medical care will be increasingly hard to find. “Befriend as many medical professionals as you can.”

I won’t comment on the swing at the ACA. I can’t replicate their picture exactly, but I can show how change in value of US Treasuries and agency debt (proxied by central bank dollar holdings) has covaried with change in the value of gold.

Figure 1: Change in USD central bank reserves (blue), estimated change in USD central bank reserves assuming 60% of unallocated reserves are in USD (green), and in central bank holdings in gold (red), all in billions of US dollars. Source: COFER, Gold Council, and author’s calculations.

Not sure the dollar’s collapse as key international currency was in the offing by end-2024. 2025, as has been discussed elsewhere, is another matter.

In any case, don’t get your financial news from the AAPS. Actually, don’t get your health news from the AAPS.