The United States Becomes A Large Net Exporter Of Gold As Price Rises - Consequences?

I would like to invoke Cramer Rule.

UK highest gold reserves was about 2,500 tonnes in 1950. By year 2000, they had sold their holdings down to 300 tons, creating the bear market low price below $300.

I think the result of these shenanigans listed above is that the stock market has risen, but the dollar has devalued by over 10% and the national debt has exploded. That is why people want gold and silver, not dollars. Precious metals have outperformed the stock market in the past year because the policies you listed above have shaken any confidence investors had in the dollar. This is the K-shaped economy where the rich who own assets get rich and those holding dollars become bagholders of a depreciating currency.

I would be lying if I said I believed that my money people have not been and are not continuing to take advantage of this process. Coins are a hobby, not an investment, so this is where I make my ends, a few degrees removed from the mechanisms.

Maybe by default, but not by design. I am not selling either way.

Food for thought.

I'm not sure that anyone is claiming that there is hyperinflation in our country. There does seem to be a cost of living crisis here. 2.7% is a composite inflation number made up of many components. Beef prices rose 16% in the last year as we have the smallest cattle herd in the last 70 years. Coffee prices have risen 20% as Brazil and Vietnam have been experiencing adverse weather and U.S. tariffs.

When people see how much less beef and coffee their dollar buys, they are motivated to buy precious metals because, unlike the dollar, their metals have increased in value.

Key Inflationary Components (Dec 2025 - Jan 2026 Data):

Energy Services: Natural gas (piped) (+10.8%) and electricity (+6.7%) are experiencing the highest, rapid increases.
Shelter: Rent and owners' equivalent rent continue to rise, with overall shelter costs increasing 3.4% annually, remaining a primary driver of core inflation.
Food Away From Home: Services, particularly full-service meals, have risen by 4.9%.
Core Goods & Commodities: While some goods have cooled, core commodities (excluding food and energy) rose 1.5% as of August 2025, driven by supply chain issues and tariff policies.
Transportation: Motor vehicle insurance, while fluctuating, has seen significant long-term increases, with prices rising over 50% between 2020 and mid-2025.

For context, overall CPI for all items less food and energy remained at 2.6% in December 2025

The primary demand for gold is not from people that think their currencies are toilet paper. It's from central governments like Poland faced with possible electronic asset seizures like Russia experienced. They'll pay whatever it costs.

The concern with asset seizures is electronic (bonds and bitcoin for example) not physical holdings of PM's. Poland's currency is the zloty not the euro, and like the ruble or the bolivar could be subject to hyperinflation if there is a war. They don't have enough gold to support the zloty but they have enough fungible wealth for an emergency.