If you think the War in Iran is only about oil then you won’t understand the effects it’s having on the price of gold.
Cue Up: Brazil quietly shifting away from the dollar to gold reserves.
Flying under the radar, we learned how The Banco Central do Brasil has raised gold’s share of reserves from 3.55% to 7.19% in just one year.
This is effectively doubling its exposure and making gold the second-largest reserve asset after the US dollar.
This is not some rinky-dink marginal adjustment or routine diversification. It is a structural repositioning that reflects a growing unease with sovereign debt markets.
Understand this…When a central bank reduces dollar exposure while increasing gold holdings, it is not acting randomly but responding to a shift in confidence.
And this aligns directly with the broader trend we are witnessing globally as central banks collectively purchased roughly 863 tonnes of gold in 2025… and are expected to remain strong buyers into 2026.
This is one of many reasons we keep pounding the table about owning physical gold AND silver.
And for a multiple increase in value, you should own gold and silver mining stocks.
Many have doubled and/or tripled in the last year.
As a result, many investors will pause and say dumb things like: “Well, it’s gone up too much and has probably peaked” or “I’ll wait till it comes down to a more reasonable price before I buy.”
The Price of Gold
Three questions:
-
What is a more reasonable price?
-
Did You Buy Bitcoin when it fell from $61,000 down to $17,000 in 2023?
-
And why are Central banks accumulating gold like crazy?
Brazil’s move is what we have been warning about for years, which is that capital flows, dictate the strength of currencies
And once confidence begins to erode in government debt, then capital begins to migrate into assets that are not someone else’s liability.
Gold fulfills that role because it cannot be printed, defaulted on, or frozen by a foreign government, and this becomes critical in a world where sanctions and financial restrictions are increasingly used as political tools.
And now Iran has become the poster child for loss of confidence in governments around the world.
As a result of Iran’s standing up to the Empire of Chaos the rest of the world has shown their cards about how they really feel about supporting America fighting Israel/Netanyahu’s war in Iran.
