The BIS Is Gaslighting You: Gold Isn’t the Bubble—Fiat Is

EDITOR'S NOTES

In response to the Bank for International Settlements’ claim that gold is in bubble territory, Frank Balm of Dedollarize News pushes back hard—arguing that gold’s rise is based on rock-solid fundamentals, not retail hype. In this analysis, he dissects the recent BIS report, exposes its flaws, and explains why gold is more of a lifeboat than a bubble. He also breaks down how central banks, not Reddit traders, are driving this bull run—and why Americans should take notice before the next financial shock hits.

Frank Balm Dec 10, 25

BIS Is Crying Bubble—But They're Wrong About Gold

The Bank for International Settlements (BIS)—often dubbed the "central bank of central banks"—just issued a warning that both gold and U.S. equities are in bubble territory. Now, I’ll be the first to admit: I don’t trust central banks to call bubbles. They create them. So when they start wagging their finger at gold—of all things—you know it’s time to take a closer look.

Let’s break down what they said, what they got right, and where they’ve completely missed the mark.

Yes, Retail Investors Are Active—That’s a Good Thing

The BIS is worried that retail investors are driving the surge in gold and equities, warning about "herd behavior" and fear-of-missing-out (FOMO). But let's be real—retail folks aren’t dumb. They're waking up to the reality that fiat currency is losing its value, and they want out before the music stops.

Think about it: We’ve had record money printing, exploding debt levels, and central banks running negative real interest rates. Ordinary people are trying to protect what little savings they have left. They're not chasing a bubble—they're fleeing a burning house.

Central Banks Are the Real Drivers of This Gold Rally

Here’s where the BIS narrative really falls apart. They point to retail ETF inflows as a sign of euphoria, but central banks are quietly buying gold at a historic pace.

Let me say that again: The very institutions that the BIS represents—central banks—are hoarding gold. In 2025 alone, they’re expected to scoop up 900 tonnes of it. That’s not Reddit hype. That’s strategic accumulation. Nations are clearly de-dollarizing their reserves, and that tells you everything you need to know about where the world is headed.

If gold were truly in a bubble, you wouldn't see the People’s Bank of China, the Russian Central Bank, and even Turkey stacking bullion like their survival depends on it. (Because it does.)

Gold Is Not Overvalued—The Dollar Is Undervalued

The BIS claims that gold is “overvalued,” but compared to what? The U.S. dollar, which has been diluted by over $6 trillion in new printing in just the past few years?

That’s like saying the lifeboat is overpriced because the Titanic ticket was cheap.

When you measure gold in real terms—relative to fiat currency, inflation, geopolitical risk, and purchasing power—it’s not expensive. It’s simply catching up to reality. In fact, $4,200/oz might be a bargain when you consider the U.S. is running $2 trillion deficits, and the Fed is preparing more rate cuts through 2026.

This Isn’t 1979—It’s Much Worse

The BIS draws comparisons to gold’s historic rally in 1979. Fair enough—but the macroeconomic conditions today are far worse. Back then, the U.S. at least had the option to raise interest rates to double digits. Today, we’re cornered.

We’re $35 trillion in debt. The Fed can’t hike rates without blowing up the economy. So the only path left is currency debasement, and gold is simply reacting the way it always does—it rises when trust in fiat falls.

Stocks? Maybe a Bubble. Gold? A Refuge.

Let’s be clear: Equities probably are in a bubble. Artificially pumped up by cheap money, buybacks, and speculative tech fever. I won’t argue with the BIS on that one.

But lumping gold into that same category is misleading, if not downright disingenuous.

Gold is not some speculative risk asset. It’s a safe haven—a centuries-old form of wealth insurance. When people lose faith in governments, banks, and paper money, they don’t go into meme stocks—they go into physical gold and silver.

The Real Threat? Central Bank Digital Currencies

You want to talk bubbles? Let’s talk about the next financial trap the BIS isn’t warning you about—central bank digital currencies (CBDCs) like FedNow.

While they accuse gold investors of irrational behavior, these same technocrats are pushing for programmable money, surveillance tools, and the elimination of cash. That’s not about efficiency. That’s about control.

Gold, on the other hand, is outside the system. It doesn’t spy on you. It doesn’t need an internet connection. And it sure as hell doesn’t come with an expiration date.

What This Means for You

Don’t let the suits in Basel fool you. The BIS isn’t protecting you—they’re protecting the system. The same system that’s quietly falling apart behind the scenes.

Gold isn’t in a bubble. It’s a warning signal—flashing red. And if you’re paying attention, you know it’s time to take action.

Take Back Control of Your Wealth

If you’re still sitting in fiat thinking everything’s fine, it’s time to reconsider. Inflation is eroding your savings, banks are more vulnerable than ever, and the elites are gearing up to tighten the screws through digital currency regimes.

Now’s the time to act—not react.

👉 Download Bill Brocius' eBook: Seven Steps to Protect Yourself from Bank Failure
👉 Subscribe to Dedollarize News and Products to stay ahead of the game: Click here

Don’t trust the system that got us into this mess. Trust gold. Trust silver. And trust your gut.