The News Is Out About This Secret Currency

Andy Snyder|December 1, 2022

It’s the world’s secret currency… and it’s getting quite popular.

It’s a major threat to the money you use and save every day.

Indeed, the lust for gold is growing quickly… and few folks are taking notice.

In Ghana – Africa’s largest producer of gold – big-name miners like Newmont (NEM), Gold Fields (GFI) and AngloGold Ashanti (AU) will soon be forced to sell 20% of their production to the country’s central bank.

From there… it will be used to buy oil.

The country is ditching the dollar. The new rules go into effect early next year.

This “de-dollarization” will have substantial impacts on the country and its future. With the dollar in charge, Ghana has seen nasty inflation, a painful trade imbalance and sluggish economic growth.

As the world’s sixth-largest gold producer, it has a massive money-printing machine at its fingertips. But all that gold doesn’t mean much if it can’t be easily traded. If it still must be turned into dollars, the idea falls flat.

Fortunately for Ghana and the world’s developing countries, the secret currency is gaining momentum. It hasn’t been this hot in more than a generation.

Central banks, as you may have heard, are diving into the stuff. In fact, they just bought record amounts of it.

According to the fine folks at the World Gold Council, central banks bought 400 tons of gold over the last three months. That number smashes old records and represents a 300% jump from the third quarter of 2021.

Even more interesting, these banks have bought a total of 673 tons so far this year. That’s the largest figure we’ve seen since Nixon took the U.S. off the gold standard 50 years ago.

It’s evidence that the world may be moving back to the standard… without telling the folks behind the dollar.

We don’t know exactly which countries bought all this gold. The big buyers – like China and Russia – aren’t the most transparent with their books. But it’s believed that America’s two largest economic enemies are stocking up.

These sovereign buyers are taking advantage of a depressed gold market. With the Fed raising interest rates at a record clip, retail buyers have shunned gold. Major ETFs have seen significant outflows this year, depressing spot prices.

But that’s likely to change as Jay Powell makes his pivot. Once rates head the other direction, gold will catch quite a bid from the retail buyer.

We’re already seeing it unfold. The dollar has lost significant strength in the last month, pushing gold nearly 10% higher over the same time frame.

Our opinion?

Simple.

The secret is out. Buy gold.

Editor’s Note: Today at 1 p.m. ET, Andy will be joining our friends at Money Morning Live for a free broadcast to talk about what’s going on with crypto right now and the asset he thinks is better than crypto. You can watch right here with this link.