The Dollar Wanes as Gold Surges

January 7, 2026 • 1 minute, 3 second read

Over the past two years, central banks have increased their gold holdings from 40% of total reserves to 50%:

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As central bank holdings of gold surge from acquisitions and higher prices, the value of dollar holdings wanes (Source: Bloomberg)

As a consequence, the U.S. dollar is being dethroned from the global monetary system in real time.

While many have pointed out – correctly – that the buck is still the global trading currency of choice, the rise of gold for savings is the real story here… even with Dollar 2.0 digital assets rebooting global finance.

Following gold’s 60% rally in 2025, we expect gold’s uptrend to remain intact.

~ Addison

P.S. Grey Swan Live! returns from its holiday hiatus tomorrow. Our guest this week will be Matt Smith, publisher at Casey Research. Matt and co-author Doug Casey have just released a new book titled “The Preparation.”

Quick hit: Since 2021, Matt has been operating a “regenerative” cattle ranch in Uruguay. The Preparation has some very strong opinions on the value of Western education and how to prepare the next generation to participate in a strong, thriving economy.

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If you have requests for new guests you’d like to see join us for Grey Swan Live!, or have any questions for our guests, send them here.

Ripple Effect

The Dollar Wanes as Gold Surges

Addison Wiggin

January 7, 2026 • 1 minute, 3 second read

gold U.S. dollar

Over the past two years, central banks have increased their gold holdings from 40% of total reserves to 50%:

Turn Your Images On

As central bank holdings of gold surge from acquisitions and higher prices, the value of dollar holdings wanes (Source: Bloomberg)

As a consequence, the U.S. dollar is being dethroned from the global monetary system in real time.

Following gold’s 60% rally in 2025, we expect gold’s uptrend to remain intact.

~ Addison

Turn Your Images On

If you have requests for new guests you’d like to see join us for Grey Swan Live!, or have any questions for our guests, send them here.

A Low-Stress Start to the Year

January 8, 2026 • Addison Wiggin

The High Yield Bond Distress Index measures levels in the junk bond market, including liquidity, market functionality, and how easily companies can borrow.

A reading this low signals extremely healthy borrowing conditions for high-yield issuers. It’s also where we would look for distress in the corporate AI build out debt issuance.

And if the high yield bond market isn’t worried yet, stock market pullbacks are likely to be short and shallow – and will likely play a role in a midyear “crack-up boom.”

The Silver Switch

January 7, 2026 • Addison Wiggin

In late December, just days before the controls took effect, silver in Shanghai traded near $78 per ounce, while the COMEX closed closer to $72. A six-dollar gap.

Normally, that spread would collapse almost instantly. Traders would buy cheap metal and sell it at a higher price until the prices converged.

Since January 1, 2026, that hasn’t happened.

Physical silver inside China carried a premium that paper markets couldn’t erase.

At the same time, London’s bullion market slipped into what traders call “backwardation” — buyers willing to pay more now than later, a classic signal of supply stress.

This is what it looks like when settlement frictions appear.

The Confidence Paradox

January 6, 2026 • Addison Wiggin

This is the confidence paradox in motion.

The legitimacy of the action remains contested. The legality may be debated for years. Yet capital immediately priced the outcome as useful.

Pundits on Fox Business immediately began explaining the complexities of processing “heavy, sour” crude oil that the refineries in Texas and Louisiana used to be tooled up for, versus the “light, sweet” variety the shale boom gushed forth.

A Tale of Two Countries

January 6, 2026 • Addison Wiggin

History is clear. The “warmth of collectivism,” as New York City Mayor Mamdani wants you to believe, doesn’t come from a healthy economy. Maybe from, burning books and buildings… but not from building a prosperous society.

A Low-Stress Start to the Year

January 8, 2026 • Addison Wiggin

The High Yield Bond Distress Index measures levels in the junk bond market, including liquidity, market functionality, and how easily companies can borrow.

A reading this low signals extremely healthy borrowing conditions for high-yield issuers. It’s also where we would look for distress in the corporate AI build out debt issuance.

And if the high yield bond market isn’t worried yet, stock market pullbacks are likely to be short and shallow – and will likely play a role in a midyear “crack-up boom.”

The Silver Switch

January 7, 2026 • Addison Wiggin

In late December, just days before the controls took effect, silver in Shanghai traded near $78 per ounce, while the COMEX closed closer to $72. A six-dollar gap.

Normally, that spread would collapse almost instantly. Traders would buy cheap metal and sell it at a higher price until the prices converged.

Since January 1, 2026, that hasn’t happened.

Physical silver inside China carried a premium that paper markets couldn’t erase.

At the same time, London’s bullion market slipped into what traders call “backwardation” — buyers willing to pay more now than later, a classic signal of supply stress.

This is what it looks like when settlement frictions appear.

The Confidence Paradox

January 6, 2026 • Addison Wiggin

This is the confidence paradox in motion.

The legitimacy of the action remains contested. The legality may be debated for years. Yet capital immediately priced the outcome as useful.

A Tale of Two Countries

January 6, 2026 • Addison Wiggin