Why Gold Will Never Return to $2,000
Just as Nixon's gold window closure made $35 gold history, the Fed's surrender to fiscal dominance makes $2,000 gold ancient history.
Gold hit $4,451 per ounce on December 22nd. Silver shattered $69.
The Federal Reserve did this. Deliberately.
December 10, 2025. The Fed cut interest rates by 25 basis points. Boring central bank stuff, right? Happens all the time.
Except buried in their own statement was this admission: Inflation has moved up since earlier in the year and remains somewhat elevated.
Inflation rising. And they cut rates anyway.
This breaks every rule. When prices accelerate, rates should go up or stay put. The Fed wrote the textbook on this. Then they torched it.
Why? Because the United States government needs to sell trillions in debt and nobody wants to buy it anymore.
So the Fed announced they’d purchase $40 billion in Treasury securities every month.
Fiscal Dominance. The Fed isn’t independent anymore. It’s a Treasury funding operation with a fancy name.
Gold at $4,451 is the market screaming what happens next. The debt won’t be repaid. It’ll be inflated away. Every dollar in every account worth less by the day.
The wealthy saw this coming. They already left.
Everyone else? Gold at $4,400 is out of reach. Silver at $69 is what’s left. People scrambling to buy rounds and Eagles at whatever premium dealers are charging.
Fed prints money, asset prices explode. Stocks soar. Real estate goes vertical. Anyone who owns assets gets richer.
That same printing? It creates inflation that devours wages. Groceries cost more. Rent climbs. Healthcare becomes fantasy.
GDP numbers say everything’s fine while the working class drowns.
Vice President Vance spent last summer screaming that the Fed’s tight policy was monetary malpractice. Trump called Powell an idiot for not cutting fast enough.
They demanded cheaper money. Mission accomplished.
But here’s the sick irony. Politicians wanted cheap money to keep spending. The market’s verdict says they got exactly that. Too cheap. The currency is collapsing.
The December meeting exposed the chaos inside. Three different votes. Cut more. Cut less. Don’t cut.
The Fed can’t even agree if there’s a problem. And people are supposed to trust them?
Capital doesn’t wait for consensus. It runs to certainty.
Gold is certainty. No promises. No counterparty. Just metal that’s been money for 5,000 years.
Foreign central banks get it. China buying gold. India buying gold. Dumping Treasuries. When the Fed has to purchase $40 billion in government debt monthly, it’s announcing to the world that America can’t find real buyers.
So everyone accelerates the exit. Gold climbs higher. Rinse and repeat.
The people getting destroyed? Anyone without hard assets. Anyone living paycheck to paycheck. Anyone whose wealth is denominated in dollars instead of things that can’t be printed.
Powell’s term expires May 2026. Trump’s already hunting for someone who’ll cut rates deeper and faster. If the next Fed Chair gets picked specifically to fund deficits and suppress yields, $4,451 is just the beginning.