Posted on 09/12/2025 6:10:13 AM PDT by delta7
Beaver Crrek, Colo. – Canadian dealmaker Frank Giustra says the age of paper gold is ending as BRICS nations stand up a parallel financial system that routes around the U.S. dollar and prizes deliverable metal.
“We’re now, believe it or not, in the era of hard money,” Giustra said Tuesday in a conversation with Alex Deluce of the Ontario-based bulletin Gold Telegraph at the Precious Metals Summit. “If you own paper gold, you do not own gold. When the crunch comes, it will not be there.”
China and partners among the BRICS (Brazil, Russia, India, China and South Africa) nations are building a system to mirror Western finance. It spans payments, settlement, depositories, ratings and swap lines – all outside the dollar. It downplays paper gold, products like gold exchange-traded funds, sovereign gold bonds and gold futures that represent a stake in gold’s value without physically possessing the metal.
Giustra, a member of the Canadian Mining Hall of Fame, pointed to yuan-for-gold convertibility on the Shanghai Gold Exchange, new physical-delivery vaulting in Hong Kong and plans for more warehouses abroad.
“It basically puts (global financial messaging network) SWIFT back into the stone age,” he said.
De-dollarization
Record bullion prices this week underscore Giustra’s argument that physical gold is eclipsing paper contracts as the true measure of value. With central banks hoarding metal and governments testing non-dollar payment systems, the shift points to a world where gold miners with scalable ounces and low costs stand to benefit while traditional currencies and leveraged financial products come under strain.
U.S. President Donald Trump using tariffs as political weapon has sped a global split into rival trading camps. Half the world is pushing trade and savings towards non-dollar channels, the serial entrepreneur said.
“A lot of people think the administration is playing 3D chess,” said Giustra, a financier known for founding Wheaton River Minerals and helping launch Goldcorp into a major producer. “I just don’t see it.”
A key BRICS plank, he said, is the cross-border central bank digital currency pilot often called mBridge. It was launched by China, Hong Kong, Thailand and the United Arab Emirates with Saudi Arabia recently joining. It lets participants settle in local currencies rather than dollars. Against that, he set out a U.S. path that leans on dollar stablecoins, digital tokens backed by short-term Treasuries.
“MBridge and stablecoins are competing forces,” Giustra said. Stablecoins, as designed, create “a way to stuff additional Treasuries into virgin pockets that never existed before.”
In his scenario, once enough debt sits inside those reserves, Washington could devalue the dollar, knocking holders of cash and dollar stablecoins while pushing hard assets like gold and metal producers higher.
Miners’ fillip
If physical delivery increasingly sets the clearing price, bullion premiums (the additional cost above benchmark spot prices that buyers must pay to secure real, deliverable ounces) and mine supply become the real constraints. It’s a setup that favours producers with scalable ounces and low costs while challenging leveraged paper products and bank trade desks, Giustra said. For investors, custody, convertibility and geopolitics matter as much as interest rates.
Heavy public debts and politics point to lower short-term rates, higher long-term yields and the return of quantitative easing or yield-curve control to cap borrowing costs – a path that weakens fiat currencies over time versus physical gold, he said.
“Fiat currencies in general are in their death throes,” Giustra said. “There is a global monetary reset coming. How it manifests itself, who knows, and whether it’s done peacefully or with a war, who knows.”
‘National security’
If the dollar’s reserve role slips, he added, the U.S. could face inflation, higher rates and a lower standard of living. “It’s a national security issue.”
Giustra framed the stablecoin-and-devaluation path as a scenario, not a forecast. MBridge remains a pilot and policy choices in Washington and Beijing will determine how far and how fast any shift runs.
Giustra traced the current gold run to a third stage of a bull market that began after 1971 and, in his framing, reignited when gold broke $1,900 an oz. in 2020. Central banks are repatriating bullion and prioritizing control of gold bars.
“Everybody’s scrambling to get physical gold onto their own territory,” he said. “This time is going to be chaotic.”
Sales pitch
Meanwhile, Wexit is burgeoning and Ontario is doomed. Those in Ontario are on the road to destitution and third world status within 6 or 7 months.
Canada isn’t
If you want to invest in gold, buy gold in the ground.
Invest in mutual fund shares that are dedicated to gold miner stocks.
Certainly, Gisstra's opinion is without bias. /s
Sales pitch
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For your own benefit. A return to “ equal weights and measures “ as stated in our Constitution is prospering those that have eyes to see.
Gold Price Performance USD
Change Amount %
Today +15.00 +0.41%
30 Days +296.54 +8.88%
6 Months +654.87 +21.98%
1 Year +1,053.95 +40.84%
5 Year +1,677.93 +85.75%
20 Years +3,186.84 +711.66%
goldprice.org - 09:13 NY Time
Brics was on its way out until Trump began trying to dictate who nations, such as India and the EU, may trade with. And his effort to force-down interest rates is not going to encourage foreigners to hold on to dollars.
“...Donald Trump using tariffs as political weapon...”
Idiot. When every other country on the planet imposes tariffs on us I never hear clowns like this call it a “political weapon”. Why is it OK for them to place extreme tariffs on us? Trump is just trying to balance the trade deficits. American markets cannot be used to subsidize the world governments at a cost to the US treasury. Those freeloading, one-way-street days are OVER.
The VanEck Vectors Gold Miners ETF (GDX) is widely recognized as the most popular gold mine ETF, primarily due to its status as the largest ETF focused on holding shares of major gold mining stocks.
GDX etf - max gain/return (2002-Present) 81%
VOO S&P 500 etf - max gain/return (2010-Present) 494%.
Ka-BOOM!! You damn right!!
“If you own paper gold, you do not own gold. When the crunch comes, it will not be there.”
Paper money is the the luxury of convenience. But it is also a convenience of benefit. Shortly after the people selling precious metals get paper outlawed, the public will understand why it was put into use to begin with. Handling gold and silver at the basic level is a pain for the consumer and they will find out how difficult it is to process a simple sale at a store let alone carrying large quantities of precious metals to buy a car or a house. For the common citizen, if you have ever tried to sell gold, you find out it sells for less than you got it there was a price to store it in the meantime.
“As for adding it to the US Strategic Supply list, silver was added to the U.S. Strategic Materials list because of its critical importance to the electronics, defense, solar panel, and electric vehicle industries, and to secure a stable domestic supply chain amid growing global demand and potential geopolitical risks. The designation from the Department of the Interior is intended to encourage domestic mining, facilitate strategic stockpiling, and support recycling programs to reduce U.S. dependence on foreign supply chains.”
See anything in there about replacing paper or just selling metals. The article was published by Northern Miner. They serve the mining and exploration industry to assist them in profit for their mining and analyze the merits of any project concisely and accurately. Of course they don’t want paper money in the US. Cuts their profit. So this commercial endeavor effort was not working for the common citizen, but for the advantage of the miners. So this was for the shareholders, not just the citizens.
wy69
Exter’s Pyramid.
https://www.daytrading.com/exters-pyramid
PM stocks are still paper, traded out for declining Dollars. True, quality PM paper stocks giving fantastic returns in USD’s. Depends on your appetite for Risk.
Many are taking advantage of the 17x plus returns, taking profits and buying physical Gold….rinse repeat….same, same with Bitcoin and E money….Exters Pyramid in action.
So we have to go back to having a goatskin pouch of gold and silver coins tied around our waist? Paper is fine to trade with as long as everyone agrees on the value it represents.
Be very careful with Van Eck, read their prospectus….big changes coming 18 Sept….just a friendly warning.
There’s one huge problem with this set-up. Absolutely no one trusts China.
Enjoy your tariffs boys.
So we have to go back to having a goatskin pouch of gold and silver coins tied around our waist?
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No, but backing a declining currency in an X amount of physical Gold will go a long way in restoring trust in failing paper. Sovereign nations have stated a 40 percent backing in physical will curtail currency debasement….and Brics is in process of doing just that.
Due note the biggest money in the world, Central Banks, are buying historic amounts of physical, presumably to stop their currencies from crashing. Gold is now the world’s Tier One asset, as of July.
The Liberal Party’s imports are bleeding the taxpayers dry , giving them like $4000 a month and if they have a job paying for 50% of that
There’s one huge problem with this set-up. Absolutely no one trusts China.
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More than half the world does, China, India, etc…
Newmont Corporation, a large gold mining company, is considered a “buy” or “strong buy”:
https://finance.yahoo.com/quote/NEM/
If you believe in this, put every penny you have into it!
You cannot go wrong!
Bricks will bail you out!
Many BSers here, no believers???
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