Gold and Silver Pull Back — Smart Money Buys When Others Wait 
The financial world is witnessing an unprecedented shift. Professional traders are shorting the U.S. dollar at levels not seen in 20 years, while central banks buying gold at record rates signal a deeper loss of confidence in fiat currency. In a recent episode of The GoldSilver Show, Mike Maloney and Alan Hibbard dissect this dramatic transformation and expose why the Treasury’s proposed “stablecoin solution” may be nothing more than wishful thinking.
Everyone’s Betting Against the Dollar—But Should They Be?
According to the latest Bank of America fund manager survey, professional traders are shorting the dollar in near-record amounts. As Mike points out, “when everybody gets on one side of the boat, the boat capsizes”
The data is striking: traders haven’t been this bearish on the dollar since 2005, during the height of the real estate bubble. Yet paradoxically, this extreme positioning might suggest a short-term reversal could be coming, even as the long-term trend remains clear.
The 30-Year Countdown: Reading the Charts That Matter
Perhaps the most sobering revelation comes from analyzing the dollar’s share of global reserves. Since 2017, the dollar’s dominance has declined from 58% to approximately 44%, while gold’s share has more than doubled from 11% to 23.5%.
Alan’s mathematical breakdown is particularly eye-opening: “if that’s uh 12% in 8 years and it’s actually faster than that that’s 1.5% per year so in order to go to zero from let’s say 45 even though it’s already lower than that it would only take 30 years.”
Think about that timeline. If you’re 30 years old today with a newborn child, by the time that child reaches your age, the dollar might no longer function as the global reserve currency.
The Stablecoin Fantasy: Why Scott Bessent’s Plan Won’t Work
Treasury Secretary Scott Bessent recently claimed that stablecoins could “reinforce dollar supremacy.” His argument centers on the Genius Act, which would force stablecoin issuers to back their tokens with U.S. Treasuries and other “safe” dollar-denominated assets.
But as Mike points out, “It’s like two guys skydiving without parachutes… worried that they’re somehow volatile relative to each other.”
The fundamental problem? Stablecoins pegged to the dollar are only as “stable” as the dollar itself — which history shows loses value consistently over time.
The Numbers Don’t Add Up
Even under the most optimistic projections, the impact would be minimal. At the Bitcoin conference in Las Vegas, economist Saifedean Ammous presented calculations showing that even if stablecoins grew to a $3.7 trillion market by 2035, they would reduce U.S. debt by at most 5.4% — barely making a dent in the nation’s fiscal challenges.
The Real Problem: Broken Trust
The acceleration in de-dollarization isn’t just about economics — it’s about trust. Mike identifies a crucial turning point: “it wasn’t Russia invading Ukraine it was the US confiscating assets that were considered sovereign assets”
This weaponization of the dollar has fundamentally altered how other nations view U.S. currency. When sovereign assets can be frozen or seized based on political decisions, central banks naturally seek alternatives.
Central Banks Know Something You Don’t
The actions of central banks speak louder than any government reassurance. Since 2022, central bank gold purchases have hit record highs, with a clear acceleration following geopolitical tensions. These institutions are converting dollars to gold at an unprecedented pace—a strategy any individual investor can replicate.
As Alan notes, the solution is surprisingly simple: “you could eliminate the dollars in your possession and convert them into gold and voila you’re as smart as a central bank”
What This Means for Your Wealth
The conversation between Mike and Alan reveals several critical insights:
- The timeline is accelerating: What might have taken 50 years could now happen in 30 — or less if current trends continue.
- Political solutions won’t work: The Genius Act and similar measures are band-aids on a structural problem.
- Central banks are leading by example: Their massive gold accumulation isn’t speculation — it’s preparation.
- The trust deficit is real: Once lost, confidence in a reserve currency is nearly impossible to restore.
The Writing Is on the Wall
While traders focus on short-term dollar movements and politicians propose complex “solutions,” the long-term trend is unmistakable. Central banks aren’t waiting for stablecoin legislation or hoping for fiscal responsibility. They’re taking action now, converting paper promises into physical gold.
The question isn’t whether the dollar’s dominance will end — it’s how quickly it will happen and whether you’ll be prepared. As Mike concludes, “gold is the ultimate safe haven” — a truth underscored by central banks buying gold at an unprecedented pace.
In a world where currencies are racing to the bottom, gold isn’t just an investment—it’s protection. With central banks buying gold at record levels, it’s clear they see the writing on the wall. The charts don’t lie, the trend is accelerating, and the window to act may be closing faster than most realize.
Watch the full episode to see the charts and analysis that paint the complete picture of where the dollar is headed—and what you can do to protect your wealth.
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