This week, let’s dive into some significant topics shaping the financial landscape—and what they mean for us, especially for those of us keeping an eye on gold. From the legal reality of “bail-ins” to Donald Trump’s return and historical impact on gold, the signs of our times couldn’t be more telling.
The Banking Tightrope: With a 200kg Backpack.
The global banking system is balancing precariously, but here’s the kicker—it’s doing so with a 200kg backpack strapped on. That weight? It’s loaded with soaring debt, struggling banks, and something many don’t realise: bail-ins are legal. Under post-2008 financial crisis laws, like the EU’s Bank Recovery and Resolution Directive (BRRD), governments and banks have the authority to “bail-in” depositors’ money to stabilise failing banks. Put simply, your savings could legally be used to prop up a struggling bank—without your consent.
No taxpayer-funded rescue, no government intervention—your money becomes their solution. Why does this matter? Because it creates uncertainty, and when uncertainty rises, gold thrives. Unlike fiat currencies or financial systems reliant on promises, gold is a tangible asset that doesn’t need a bank, government, or institution to give it value. It’s real, it’s timeless, and it doesn’t play by the same risky rules.
Donald Trump and the Gold Effect.
Donald Trump’s return to the White House is stirring discussions about significant economic shifts.
Look at what happened during his presidency (2016–2020): Unemployment hit a 50-year low at 3.5%.
The Dow Jones Industrial Average surged, breaking record highs.
The U.S. achieved energy independence, becoming the world’s largest oil and gas producer. And most notably for us, gold prices rose approximately 55%.
Why did gold rally? Economic policy changes, market volatility, and heightened global uncertainty created the ideal environment for precious metals. When Trump does return to power (20th January), history suggests gold could be poised for another significant climb.
Is the World Just Going to Heal Itself? Do you believe the world will magically fix itself overnight? Global conflicts are escalating, economic instability is growing, and governments are tightening their grip on finances. If you think everything will resolve without a hitch, that’s fine; I do not think you need my help (and I say that with the utmost respect). But if you look at the facts, patterns, and historical trends, gold’s trajectory becomes increasingly evident in my personal and professional opinion.
Every major factor that has ever driven gold to new all-time highs seems to be at play.
So this is one of those ‘good’ times to buy!
Inflation? Check.
Geopolitical conflict? Check.
A shaky dollar? Check.
Banking uncertainty? Check.
This isn’t about crystal balls or speculation; it’s about recognising a pattern that history has proven time and time again.
Gold: A Timeless Beacon of Security Throughout history, when systems faltered and uncertainty loomed, gold has stood as a steadfast refuge. In times of war, economic collapse, or political turmoil, people have turned to gold as an asset and a symbol of stability. Unlike currencies that can be printed or markets driven by speculation, gold carries no counterparty risk. It’s not a promise on paper; it’s tangible, intrinsic value you can hold in your hand.
From ancient empires to modern economies, gold has consistently weathered the storms, maintaining its worth when everything else seemed to crumble. It’s more than a store of value—it’s peace of mind. In a world of risk, gold remains the riskless constant; I am also open to hearing of other strategies!
Plant the Seeds and watch Them Grow.
I can only share what makes sense to me. This is simple: I’m giving you the seeds. If you want to see them grow, you need to water them. That means using the knowledge, history, and trends I’ve shared to make informed decisions that align with your goals and what you want in the future (results-based thinking).
Where is Gold Going? The signs are pointing upward. While no one can predict the future with certainty, history has shown us that gold thrives in times like these. If you’d like to explore how this could work for you, let’s talk.
Looking forward to keeping you In the Know!
This article, ” In the Know with Kane,” is for informational purposes only and does not constitute financial advice. Investing in precious metals involves risks, and past performance does not guarantee future results.
Kane is a guest blogger. You can find him on X here.