Echo of the 1970s Gold Spike – Today’s Rally Isn’t Just About Demand, It’s About Distrust

I’ll give credit where it’s due: the Goldman Sachs analyst, Lina Thomas, isn’t entirely off the mark here. Yes, the demand for gold is real. Yes, central banks are buying it like there’s no tomorrow. And yes, private investors are waking up to the idea that this financial system might not be as sturdy as we’ve all been told.

But let’s not pretend this is some smooth, rational, purely economic story.

What’s really behind this gold rally isn’t just a “normalization of allocation.” It’s fear. Not panic in the street—yet—but deep, simmering distrust. Distrust in central banks. Distrust in governments. Distrust in the U.S. dollar.

This isn’t just about Fed rate cuts. This is about what’s happening behind those rate cuts. Let me explain.

A Rally Built on the Rot Beneath

Gold is up 65% this year. That’s not normal, and we all know it. Lina Thomas tries to frame it like some overdue rebalancing act—as if everyone suddenly remembered they should hold 5-10% in gold like it's just another ETF.

But let’s talk about what’s really changed.

• Central banks, especially in the Global South—like China, Russia, and the BRICS bloc—are dumping Treasurys and stacking gold like it’s 1979 again.
• Private investors have watched inflation devour their savings while the Fed dances between rate hikes and cuts, all while telling us it’s “transitory.”
• And geopolitical risk is through the roof—wars in Europe and the Middle East, tensions with China, supply chain chaos, cyberattacks, and a U.S. election that could go off the rails.

These aren’t “macro trends.” These are warning flares.

This is exactly what happened in the 1970s. Nixon nixed the gold standard, inflation ran hot, the system started to break—and people rushed into gold because they didn’t trust the government or the dollar anymore. Sound familiar?

They Say "Rational." I Say "Reactive."

Ray Dalio says it’s “semi-rational” to hold gold right now. Jamie Dimon says gold actually makes sense. When the banking elite start casually endorsing gold after decades of downplaying it, you know they see what’s coming.

It’s not just that people want to own a shiny rock.

It’s that gold is outside the system. You can’t print it. You can’t devalue it with a click. And you sure as heck can’t freeze it with the flip of a switch like they can with your brokerage account or digital wallet.

This is why central banks want it.

This is why investors are scrambling for it.

This is why I’ve been yelling from the rooftops for years now: get out of fiat while you still can.

Don’t Sleep on ISO 20022 – The Rails Are Already Built

Now, a quick word about something most folks haven’t even heard of: ISO 20022.

While Trump has banned Central Bank Digital Currencies (CBDCs) for now—and thank God for that—the infrastructurethat would allow them to be switched on overnight is still being rolled out.

ISO 20022 is the global standard for financial messaging. Sounds harmless, right? But this isn’t just about efficiency or cross-border payments. It’s about programmable money. Interoperability. Full-spectrum visibility of your financial activity.

Once everything is standardized under ISO 20022, turning on a digital currency system—even just a “soft” version of it—is as simple as flipping a switch.

So don’t be fooled. Just because the political winds have shifted today doesn’t mean the system isn’t being built for tomorrow.

Final Thoughts from a Guy Who’s Seen This Before

I remember the 1970s. My old man’s paycheck didn’t go as far every month. Gas lines wrapped around the block. Interest rates were sky-high, but savings accounts couldn’t keep up with inflation. It was like quicksand.

And gold? It was the rope people reached for when the system started to sink.

Here we are again. Different day, same rot underneath.

So when Goldman Sachs says the rally is “fundamental,” they’re right—but not in the way they think.

It’s fundamental because people no longer trust the system. And that trust, once gone, doesn’t come back easy.

What You Should Do Right Now

Don’t wait for the next rate cut. Don’t wait for the next “emergency” that pushes your dollars down another notch.

Take control. Get physical gold and silver into your own hands—outside the banking system, outside the digital matrix.

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We’re not just talking about wealth anymore. We’re talking about freedom.

Stay sharp,
Frank Balm