{"id":1666650,"date":"2026-02-26T17:20:00","date_gmt":"2026-02-26T22:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1666650"},"modified":"2026-02-26T17:20:00","modified_gmt":"2026-02-26T22:20:00","slug":"even-banks-now-bow-to-a-golden-master","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/even-banks-now-bow-to-a-golden-master\/1666650\/","title":{"rendered":"Even Banks Now Bow To A Golden Master"},"content":{"rendered":"

Even Banks Now Bow To A Golden Master<\/span><\/p>\n

\n

Authored by Matthew Piepenburg via VonGreyerz.gold,<\/em><\/a><\/p>\n

Although I never expected to say this, if you are still wondering about gold\u2019s future price direction, just ask the big banks\u2026<\/p>\n

<\/a><\/p>\n

Getting Real<\/strong><\/h2>\n

Emerging from a 2025 in which gold saw 53 all-time-highs and an annual move of 55%, some wondered if this was just another blow-off asset akin to any other, from dot.com stocks to crypto manias.<\/p>\n

Such a misunderstanding of gold\u2019s fundamental profile as a strategic monetary metal gained a bit more momentum on\u00a0Silver Friday<\/strong><\/a>, when the CME engineered yet another temporary and entirely artificial price dip\/manipulation to bail out the big banks caught in the mother of all silver short-squeezes.<\/p>\n

This was not an end to the rise of precious metals, but a capitulation by the COMEX short-sellers (i.e. bullion banks) to get out their surging way.<\/p>\n

Of course, when it comes to the\u00a0legalized fraud in the COMEX<\/strong><\/a>\u00a0or an\u00a0openly rigged banking system<\/strong><\/a>, my thoughts, pen and\u00a0voice<\/strong><\/a>\u00a0have been consistently and transparently unkind.<\/p>\n

Ever since insiders like Larry Summers helped to repeal Glass Steagall and effectively turn commercial banks into levered portfolio managers using depositor funds, the fractional reserve banking system became anything but a trusted counter-party for so-called \u201cwealth management\u201d in general or\u00a0gold ownership<\/strong><\/a>\u00a0in particular.<\/p>\n

In other words, when it came to understanding gold, banks were the last place to find an honest broker or candid price projection.<\/p>\n

The great irony behind all the recent bank squeezes and Comex mechanizations, however, is that they signaled an otherwise carefully hidden truth, namely: The big banks already knew that gold\u2019s price moves had only just begun.<\/p>\n

The Big Banks: From Gold Deniers to Gold Buyers<\/strong><\/h2>\n

For decades, of course, bankers intentionally downplayed gold for obvious and self-serving reasons.<\/p>\n

First, gold\u2019s price direction was a direct threat to the \u201cKing Dollar\u201d narrative which every banker from the BIS and the Fed to JP Morgan relied upon to compliantly ensure their employment.<\/p>\n

Secondly, pushing gold, or even\u00a0bank<\/strong>\u00a0gold storage<\/strong><\/a>, was not nearly as profitable as pushing the far riskier yet consensus-safe template of\u00a0topping private equity bubbles<\/strong><\/a>\u00a0and\u00a0cancerously sick private credit pools<\/strong><\/a>.<\/p>\n

But as we enter 2026, the greater irony is that even the big banks can no longer hide what sophisticated gold investors have always known, namely: Rock now beats paper.<\/p>\n

A Gold New World<\/strong><\/h2>\n

In world in which fiat currencies are quantifiably and objectively melting like an ice cube under the heat of over $354T in global private and public debt, as well as $38T of embarrassing U.S. sovereign debt, the jig is up on the declining purchasing power of the paper currencies by which wealth is falsely (and dangerously) measured.<\/p>\n

Gold, alas, is not a \u201crising trend,\u201d it\u2019s the de-facto new Tier-1, primary reserve asset and FX reserve currency in a changing world openly\u00a0losing trust in paper currencies and sovereign IOUs<\/strong>.<\/a><\/p>\n

In this changing world, the banks have been forced to change as well.<\/p>\n

In 2025, for example, even Morgan Stanley, once fined for illegal price manipulation in precious metals, was suddenly yet correctly recommending a 20% allocation to gold over the \u201creturn-free-risk\u201d of USTs.<\/p>\n

The Latest from the Big Boys<\/strong><\/h2>\n

Even more telling, however, are the still media-ignored messages percolating out of Goldman Sachs and JP Morgan.<\/p>\n

Goldman, for example, just made its 2026 year-end forecast for gold at $5400. Key to note, is that Goldman was careful to call this a \u201cforecast\u201d rather than \u201ctarget.\u201d This is because they wanted to avoid appearing too bullish.<\/p>\n

But Goldman deliberately added the words \u201cwith significant upside risk\u201d to their forecast, which translates to they actually expect a much higher year-end price move.<\/p>\n

JP Morgan spoke far more directly\/bullishly, announcing a $6300 gold price as their \u201cbase case\u201d for year end, and went on to confess an upside as high as $8500.<\/p>\n

Folks, seeing such gold price confessions from two pillars of a banking system historically terrified of rising gold is beyond telling; it\u2019s in fact revolutionary in its implications.<\/p>\n

To see banks suddenly joining the gold narrative is not only a confession of the dollar\u2019s declining global role, it\u2019s a signal of a global financial system in open flux.<\/p>\n

In other words, even the big banks can no longer ignore the signals we have been revealing for years.<\/p>\n

Seeing What We\u2019ve Always Known<\/strong><\/h2>\n

This is especially true of the open\u00a0breakdown in the COMEX exchange<\/strong><\/a>, a devolution we\u2019ve been tracking well ahead of their public learning curve.<\/p>\n

With precious metals pouring out of the COMEX to a world openly thirsty for physical gold and silver, the exchange simply lacks enough of the physical metals to lever prices effectively downwards.<\/p>\n

Take the COMEX silver inventories, which have fallen to 82M ounces. That\u2019s a 75% decline from 2020.<\/p>\n

Equally beyond denial for the commercial banks like Goldman and JP Morgan, is the dramatic stacking of physical gold by the world\u2019s central banks, another bank-ignored fact we\u2019ve been tracking for years.<\/p>\n

Winds of Dramatic Change \u2013 From Dollar Debasement to Gold Stacking<\/strong><\/h2>\n

Of course, the primary winds behind these changes had been obvious long before the TBTF banks finally admitted as much to themselves (or their clients).<\/p>\n

The most obvious wind has been the hitherto ignored yet openly obvious matter of currency debasement.<\/p>\n

When the M2 money supply skyrocketed 40% from $15T to 21T during the Covid hysteria, followed by another surge thereafter to $22T, was it really any surprise to see such an over-supplied dollar so debased (and hence your wealth so constructively stolen) by 2026?<\/p>\n

Debasement, though bad for wealth preservation, sure is good for broke governments. Interest payments for Uncle Sam\u2019s bar tab have grown by greater than 3X in the last five years, making it DC\u2019s 2nd\u00a0largest federal expenditure.<\/p>\n

With U.S. debt at historically unprecedented as well as unpayable highs, such debt can be made worthless by making money more worthless\u2014a win for Uncle Sam but\u00a0open robbery for Joe Sixpack<\/strong>.<\/a><\/p>\n

Gold, of course, has been quietly keeping score of this rigged game.<\/p>\n

Relative to the M2 money supply, it is still grossly undervalued. The M2\/gold ratio stands today at 4.5, not even close to the 2.5 level of the 1980\u2019s, which means gold has a long way higher to go in price.<\/p>\n

Further QE measures, which have already begun in 2026, will only add more dilution to the USD and more tailwinds to gold. In periods of excessive money printing, gold surges.<\/p>\n

In the 1970\u2019s, for example, gold rose 2300% (from $35 to $850). After the 2008 crisis, it moved upwards by 170% ($700-$1900), and during the Covid nightmare, shot up 40% (as the Fed\u2019s balance sheet added $4.6T of mouse-clicked dollars) and would have traveled much further but for the then-current BTC hysteria, which distracted many\u2026<\/p>\n

More Winds\u2026<\/strong><\/h2>\n

Another wind of change, of course, has been the central bank gold stacking alluded to above. Ever since the watershed turning point in Q1 of 2022 when the US decided to weaponize the world\u2019s neutral reserve currency, distrust in USDs and faith in gold has risen irrevocably higher.<\/p>\n

Since that seminal event, and as we\u00a0warned from day 1<\/strong><\/a>, central bank gold purchasing has risen by 5X, from 17 tons\/month in 2022 to over 107 tons\/month today.<\/p>\n

Goldman Sachs estimates that for every 100 tons of gold purchases, gold\u2019s price climbs by 2%.<\/p>\n

Given that global central banks from Poland, China and Turkey to India and Russia will conservatively reach at least 750 tons annually, gold\u2019s future price \u201cforecasts\u201d are not hard to measure.<\/p>\n

Of course, such central bank buying doesn\u2019t even include the retail sector, which is the last to catch on, ironically due to the fact that their bankers have been telling them for decades that gold was too volatile, despite the fact that it has outperformed the S&P in total return for a quarter of a century\u2026<\/p>\n

Despite record inflows to ETF gold in 2025, the average global allocation to gold is still less than 1%, and only just beginning to pick up towards prior median levels of 2%, or even prior highs of greater than 6%.<\/p>\n

This growing retail trend (and awareness surge) will only add to gold\u2019s longer-term and secular price momentum.<\/p>\n

Bowing to a New Master<\/strong><\/h2>\n

Based on these now obvious winds of change, gold\u2019s direction is becoming far less of a debate or the contrarian trade of old.<\/p>\n

Instead, the winds and signals in the gold market are calling paper money\u2019s bluff. Gold is now emerging, as it\u00a0always has throughout history<\/strong><\/a>, as a core allocation and superior store of value than paper promises or paper dollars.<\/p>\n

As\u00a0Gresham\u2019s law reminds<\/strong><\/a>\u00a0from as far back as the 1500\u2019s, once investors are made to feel the difference between \u201cgood money\u201d (gold and silver) and \u201cbad money\u201d (debased paper currencies) they eventually replace the later with the former.<\/p>\n

What we have been tracking for years among the actions (rather than words) of the central bankers confirms this now undeniable pattern.<\/p>\n

And what we are finally witnessing among the commercial banks today is that not even these former servants of paper products can deny the new direction of monetary metals.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 02\/26\/2026 – 12:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/precious-metals\/even-banks-now-bow-golden-master<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Even Banks Now Bow To A Golden Master Authored by Matthew Piepenburg via VonGreyerz.gold, Although I never expected to say this, if you are still…<\/p>\n","protected":false},"author":0,"featured_media":1666651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1666650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6Zzs","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2026\/02\/The_global_gold_rush_why_are_cen-1hiSeY.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1666650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1666650"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1666650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1666651"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1666650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1666650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1666650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}