Gold; the One Who Waits.

Gold quietly reclaims its ancient role; unchangeable, issuerless, and more relevant than ever. And when the time comes, it will step back with grace, making room for the newcomers.

The recent rise in the price of gold has been nothing short of remarkable, even when viewed through a long-term lens. What makes this rally particularly notable is not just the magnitude of the increase, but the consistency of daily gains and the low realized volatility. This isn’t a speculative burst; it has the feel of a structured, sustained trend. Elevated demand for financial gold, and especially for physical gold, points to something deeper at play, something structural that merits careful attention.

Gold is a peculiar asset. Its supply is naturally constrained: it cannot be created or printed; only extracted, and extraction takes time. This rigidity in supply means that when the world collectively decides it needs more gold, it has no choice but to bid its price higher. What we are witnessing is a parabolic increase in the market capitalization of gold. And with each dollar increase in price, gold becomes more efficient as a reserve asset: the higher the price per gram, the less of it you need to move or hold to achieve the same monetary impact.

Gold is reclaiming its traditional role as the safe haven of safe havens. In a moment of profound uncertainty, where the global financial and geopolitical order appears in flux, gold behaves exactly as it should. It becomes precious. It becomes indispensable. It does not yield, it does not default, it does not inflate. Gold has no issuer other than the Earth itself, and its credibility is drawn from the long, unbroken arc of human history. No government can revoke its status, nor can a central bank declare its failure.

In this context, the symbolic throne of the financial world, the US dollar, is starting to wobble. The dollar is still king, but it no longer seems willing, or perhaps able, to fully embrace the burden of its crown.

Recent financial tensions unveil on an old idea in macroeconomics known as the "impossible trinity": no country can simultaneously have a fixed exchange rate, free movement of capital, and full control over its own monetary policy. At best, you can pick two. The US has long chosen to let capital flow freely and to give its central bank, the Federal Reserve, full independence. In doing so, it allowed the dollar to float, meaning its value is set by global markets.

But here's the catch: the dollar isn’t just America's currency. It’s the currency the world uses to trade, borrow, and save. Fed acts as the world’s de facto central bank. That’s not sustainable. The U.S. is indeed running larger and larger deficits, borrowing more to fund its growing obligations. A weaker dollar would help rebalance its economy. But a weaker dollar also means giving up some of its influence. And the world has built its financial architecture around a strong, stable dollar. So if the dollar steps back, the system starts looking for alternatives.

Right now, that alternative is gold. Not because gold is perfect, but because it’s the only thing available that everyone still trusts. And so capital flows toward it; not in a panic, but in a slow, steady migration. Gold becomes the luxury parking space for money that no longer feels safe in the dollar.

Gold, with all its physical constraints, becomes the temporary refuge. A luxury parking space for capital in search of a sovereign asset immune to political risk.

Yet gold has limits. Bretton Woods collapsed precisely because a gold-based monetary system proved too inflexible for the demands of modern finance. Today, gold may absorb flows exiting the dollar, but it cannot permanently replace it. Sooner or later, fiat money must reclaim the center stage. The question is: once the transition occurs, who will take gold’s place?

Will a single currency succeed the dollar? Or will we enter a multipolar regime, a trio of global anchors? The euro is eager. The renminbi is maturing. And gold, as ever, offers protection and stands watch; silent, neutral, and increasingly expensive.