Gold is Becoming “Monetary Infrastructure”

“Gold loves to make its way through guards, and breaks through barriers of stone more easily than the lightning’s bolt.”

— Horace

April 21, 2025 — Why is gold marching steadily higher while everything else is trading chaotically? An X thread from @mcm_ct_usa offers a useful— and for gold bugs, very exciting —explanation. Here’s a condensed version:

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Gold is quietly being re-monetized—and most people don’t see it. Here’s what’s happening, why it matters, and why it’s not priced in. This is for anyone who understands markets, but not the monetary architecture behind them.

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Most people think gold is just an inflation hedge. They’re missing something bigger: Gold is becoming Tier 1 collateral again. And that changes everything.

Historically, gold was money. It backed empires, settled international trade, and stabilized systems. Until 1971—when the U.S. closed the gold window. That decision turned gold into a commodity. But not for long.

Even after 1971, central banks kept gold. They never sold it off like other assets. Why? Because gold wasn’t dead. It was just sleeping—outside the system, waiting for recognition. That moment is now.

Enter Basel III. In 2023, global regulators began reclassifying physical gold as a Tier 1 asset—equal to cash or sovereign bonds. This is not a theory. This is regulatory policy.

Bank of England — July 2024

Federal Reserve — March 2025

ECB — April 2025

Basel III full implementation — June 30, 2025

Gold is being hardwired into global banking.

Gold as a Tier 1 Asset Means More Demand from Banks.

Why does this matter? Because it changes who can hold gold, how they use it, and what it’s worth to the system. Gold is now usable collateral for banks. They can borrow, lend, and settle with it.

That turns gold into active liquidity. Not just a store of value.

We’re talking about a return to gold as balance sheet capital—fully counted, fully trusted.

This isn’t about inflation anymore. It’s about structure. Gold is rising not because people are scared…but because banks are buying—quietly, systematically, under new rules.

Gold ≠ crypto. Crypto is outside the system. Gold is being brought back into the system. Approved. Custodied. Trusted. Global. It’s the opposite trajectory.

Most people still think in price terms. But Basel III is about utility. Gold is becoming useful again—for banks, nations, and institutions. Utility leads price. Always.

Now ask yourself: Why is gold hitting ATHs without retail FOMO? Without Fed pivoting? Without crisis? Because this isn’t a reaction. It’s a transition.

So what actually changes?

Banks can now use gold as Tier 1 capital.
Gold becomes accepted as interbank collateral.
Those who custody gold now hold system-grade liquidity.

That creates a two-tiered gold market:

Paper gold = derivatives, ETFs, futures.
Real gold = vaulted, allocated, physically settled. Only one gets Tier 1 status.

We are now watching the re-rating of gold. It’s not about a price spike. It’s about gold being re-weighted—against other assets, against debt, against global risk.

Gold is still historically cheap in relative terms with most other assets ridiculously overvalued. It’s at ATHs in nominal dollars, but discounted versus equities, real estate, and other assets bloated by fiat expansion.

As gold becomes Tier 1 collateral, its monetary premium will rise. It won’t just be a trade. It will be a reference point.

The smart money isn’t trading gold. They’re positioning around it—vaulting it, settling it, insuring it. Basel III gives them a reason to do it system-wide.

And now it’s not just central banks accumulating. It’s commercial banks, family offices, and sovereign wealth funds. Not speculation. Structural demand.

If you hold gold now—physical, allocated, auditable—you’re not hedging. You’re front-running the collateral shift that the world will recognize after it’s complete & it’s too late… in my opinion, this is related to Agenda 21 and Agenda 2030. The idea is to make people poor in real terms.

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This isn’t just a gold rally. This is the reintroduction of gold back into the most significant monetary infrastructure role it’s ever had. It will not happen twice in our lifetime.

Gold isn’t becoming Tier 1 because of price. It’s rising in price because it’s becoming Tier 1.

Gold is no longer just a store of value. It’s becoming a tool of liquidity—inside the global system. If you understand, you know what happens next.

Gold isn’t a trade. It’s infrastructure. You need to know what’s coming.

This shift to gold as Tier 1 isn’t happening in a vacuum. It aligns with broader global financial restructuring under frameworks like Agenda 2030 and Agenda 21. You may not see the connection yet. But the dots are real—and they’re deliberate.

Agenda 2030 is marketed as sustainable development. But behind the buzzwords, it quietly introduces a model of centralized liquidity + decentralized poverty. You don’t own your home. You don’t own your energy. And soon—if you’re not careful—you don’t own your value.

Gold (and silver) are being structurally elevated while attention is focused on digital distractions. Crypto will remain volatile. Fiat will inflate. But real collateral— $GOLD —will be restricted, vaulted, and eventually out of reach. Unless you front-run that now.

John Rubino

“Gold loves to make its way through guards, and breaks through barriers of stone more easily than the lightning’s bolt.”

— Horace

Turn Your Images On

Most people think gold is just an inflation hedge. They’re missing something bigger: Gold is becoming Tier 1 collateral again. And that changes everything.

Enter Basel III. In 2023, global regulators began reclassifying physical gold as a Tier 1 asset—equal to cash or sovereign bonds. This is not a theory. This is regulatory policy.

Bank of England — July 2024

Federal Reserve — March 2025

ECB — April 2025

Basel III full implementation — June 30, 2025

Gold is being hardwired into global banking.

Gold as a Tier 1 Asset Means More Demand from Banks.

Why does this matter? Because it changes who can hold gold, how they use it, and what it’s worth to the system. Gold is now usable collateral for banks. They can borrow, lend, and settle with it.

That turns gold into active liquidity. Not just a store of value.

We’re talking about a return to gold as balance sheet capital—fully counted, fully trusted.

This isn’t about inflation anymore. It’s about structure. Gold is rising not because people are scared…but because banks are buying—quietly, systematically, under new rules.

Gold ≠ crypto. Crypto is outside the system. Gold is being brought back into the system. Approved. Custodied. Trusted. Global. It’s the opposite trajectory.

Most people still think in price terms. But Basel III is about utility. Gold is becoming useful again—for banks, nations, and institutions. Utility leads price. Always.

Now ask yourself: Why is gold hitting ATHs without retail FOMO? Without Fed pivoting? Without crisis? Because this isn’t a reaction. It’s a transition.

So what actually changes?

Banks can now use gold as Tier 1 capital.
Gold becomes accepted as interbank collateral.
Those who custody gold now hold system-grade liquidity.

That creates a two-tiered gold market:

Paper gold = derivatives, ETFs, futures.
Real gold = vaulted, allocated, physically settled. Only one gets Tier 1 status.

We are now watching the re-rating of gold. It’s not about a price spike. It’s about gold being re-weighted—against other assets, against debt, against global risk.

As gold becomes Tier 1 collateral, its monetary premium will rise. It won’t just be a trade. It will be a reference point.

The smart money isn’t trading gold. They’re positioning around it—vaulting it, settling it, insuring it. Basel III gives them a reason to do it system-wide.

And now it’s not just central banks accumulating. It’s commercial banks, family offices, and sovereign wealth funds. Not speculation. Structural demand.

Turn Your Images On

This isn’t just a gold rally. This is the reintroduction of gold back into the most significant monetary infrastructure role it’s ever had. It will not happen twice in our lifetime.

Gold isn’t becoming Tier 1 because of price. It’s rising in price because it’s becoming Tier 1.

Gold is no longer just a store of value. It’s becoming a tool of liquidity—inside the global system. If you understand, you know what happens next.

Gold isn’t a trade. It’s infrastructure. You need to know what’s coming.

John Rubino

In the U.S., stablecoin rules remain tangled between crypto exchanges eager for new customers and small banks afraid of losing deposits.

China’s Ant Group is filing trademarks for “Antcoin” while the Party debates whether digital dollars threaten national sovereignty. And in Singapore, StraitsX cofounder Samson Leo frets about regulatory fragmentation: “If every jurisdiction requires us to split reserves across their banking systems, customer protection will diminish.”

Stablecoins today are where email was when businesses still faxed each other printouts of their inbox goes an apt analogy suggested by Bloomberg’s Andy Mukherjee.

The rails are there — the habits aren’t. But the shift is coming. And when it does, it won’t just change how we pay — it’ll change who gets paid.

Anticipating a sluggish labor market, the Fed has cut rates twice this fall.

Unfortunately, you can’t fix a reorganization with cheaper money. AI will eat the easy tasks first, so the pain you see — pink slips — is only half the story. Those jobs will likely never return.

If you’re from New York—or know anyone there—you’ll probably agree: most New Yorkers are fed up with crime, the outrageous cost of living, government incompetence and corruption—and, yes, the rats.

But the fact that a hard-core socialist like Mamdani is their favorite pick to solve those problems tells you that most voters have no idea why any of it is happening.

Their hatred of Donald Trump—and a steady diet of MSNBC—has made them blind to the obvious: it’s the Left’s policies creating these problems. You have rent control shrinking supply by forcing landlords to pull units from the market, union giveaways jacking up the cost of transportation, zero-bail laws putting criminals back on the streets, and so on and so forth.

Markets are having themselves a moody little week.

The Dow’s off 1%, the S&P 500’s down 2%, and the Nasdaq — where the AI darlings dance — has stumbled nearly 4%.

Even the refuge assets are catching cold: gold glitters less, and bitcoin, ever the high-strung teenager of finance, is down nearly 8%.

At the moment, traders aren’t sure what to make of it all.

Trump’s tariffs are under review at the Supreme Court, Zohran Mamdani’s socialist experiment is about to begin in New York City, and the AI trade — Wall Street’s favorite bedtime story — is between plot twists.

In the U.S., stablecoin rules remain tangled between crypto exchanges eager for new customers and small banks afraid of losing deposits.

Stablecoins today are where email was when businesses still faxed each other printouts of their inbox goes an apt analogy suggested by Bloomberg’s Andy Mukherjee.

The rails are there — the habits aren’t. But the shift is coming. And when it does, it won’t just change how we pay — it’ll change who gets paid.

Anticipating a sluggish labor market, the Fed has cut rates twice this fall.

But the fact that a hard-core socialist like Mamdani is their favorite pick to solve those problems tells you that most voters have no idea why any of it is happening.

Markets are having themselves a moody little week.

The Dow’s off 1%, the S&P 500’s down 2%, and the Nasdaq — where the AI darlings dance — has stumbled nearly 4%.

Even the refuge assets are catching cold: gold glitters less, and bitcoin, ever the high-strung teenager of finance, is down nearly 8%.

At the moment, traders aren’t sure what to make of it all.