Vincent Lanci: The Coming Gold Revaluation – China vs America

Tom welcomes Vince Lanci, Professor of MBA Finance, Commodity Portfolio Manager, and Publisher of the GoldFix Substack, discussed his concerns about the global economy and the implications for gold. Lanci noted a significant shift in his tone regarding gold, attributing it to a series of events and conversations that led him to believe China might be accelerating its plans to monetize gold. He highlighted China’s liberalization of gold ownership and the increasing purchases of gold by Chinese banks, indicating a strategic move by China to diversify its reserves and potentially challenge the US dollar’s dominance. Lanci also discussed the geopolitical tensions between the US and China, suggesting that China’s patience with the US has worn thin due to Trump’s rhetoric and actions. He mentioned China’s pushback against US policies and its strategic moves, such as aligning with India and other BRICS countries, as signs of a potential economic war. Lanci believes that the US is in a precarious position, unable to withstand a recession due to high stock valuations and the need to rebuild its manufacturing base. He argued that the US is creating a bubble to avoid a recession, which could lead to a significant economic crisis if China decides to escalate its gold strategy. Lanci also touched on the role of oil in the global economy, noting that the traditional signal of geopolitical tension through oil prices has been broken. He suggested that investors should look at refined products like gasoline and diesel for better indicators of global unrest. Lanci believes that the US is prioritizing inflation over recession, as a recession could lead to a collapse in stock markets and a loss of confidence in the US economy. He advised investors to own a barbell portfolio, with one end focused on stocks and the other on gold and miners, to hedge against potential economic downturns. Lanci also discussed the potential for stablecoins to play a significant role in the global economy, suggesting that they could be used to absorb excess liquidity and support the US dollar. He believes that stablecoins could be a force in the market, but their success will depend on the anchor tenants that adopt them. Lanci also noted the potential for gold to be revalued, which could instill confidence in the metal and lead to further price increases. He suggested that a revaluation of gold could be bullish for the metal, as it would encourage more companies to hold it and potentially lead to further price increases. Timestamps:00:00:00 – Introduction00:01:15 – Gold Price Surge Concerns00:02:27 – China BRICS Gold Liberalization00:04:37 – Trump China Rhetoric Escalation00:05:43 – US Manufacturing Rebuild Urgency00:11:13 – Market Panic HQLA Insight00:13:09 – Gold Tier One Capital00:14:40 – Unlocking Gold HQLA Value00:20:40 – China Gold Monetization Plan00:22:24 – US Recession Vulnerability Analysis00:25:58 – Oil Prices Geopolitical Signals00:34:03 – Inflation Over Recession Preference00:42:49 – Recommended Inflation Hedge Assets00:57:23 – Stablecoins Debt Absorption Potential01:04:13 – Silver Price Milestone Significance01:08:40 – Concluding Thoughts Guest Links:Substack: https://vblgoldfix.substack.com/X: https://x.com/SorenthekZerohedge: https://tinyurl.com/3x72ndfcLinkedIN: https://www....