Let's Talk about Gold

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Gold Futures and the Trading Involved

In this entry, I will discuss Gold, my thoughts about God's metal, and its futures contracts, and provide some insight on how it can be traded. With a change of pace, I will talk about the precious metal known as Gold. This metal is the currency of the Gods. If you look at the current spot price vs Fiat currencies, there clearly is no competition. This commodity is crucial for daily life and it is not just used for fancy jewelry and wedding rings.

Futures are traded against gold and 100 troy oz makeup 1 gold futures contract /GC. A lot of the trading involved are speculators, funds, or even central banks looking to secure treasury gold for themselves.

If you don't know, central banks are the largest holders of gold in the world. In the world of currency wars and debt issuance, ultimately there could be an end to the money printing, when there is a debt reset, as they say

He who holds the gold makes the rules.

The countries with the most gold reserves would likely be in a better position when a new world order arises. But more on this later.

Let's get to our discussion.

The Background of Gold

Let me give you a compact depiction of Gold. Gold is a Noble Metal with the Atomic Number 79. It is diamagnetic and slightly repels magnetism. It is corrosion-resistant & a good thermal conductor. It is a good electrical conductor as well. Hence if there's an industrial, electrical, or technical application, you can bet Gold is a metal of choice. Your iPhones have gold circuitry. Some of your headphone jacks are 24k gold plated, Your wedding ring is likely 18k gold.

As you can see the use of the commodity is very vast. However, it goes back past modern times.

Gold under circulation in the form of currency and coins used to be like this. However, the Treasury has taken control of the circulation and minting of gold coins. They are still legal tender today usually with a face value of $50. But you would be insane to pay with a gold coin that costs $1800+ in the market. The retailer will take it and in the back, they will likely sell it for a profit thinking what an idiot you are. Lol. So today these coins are more of an investment and collectible.

Currency now has become this.

And this.

The quality of currency has become very 'crappy' to put it lightly. With that said we can transition to my thoughts now.

My Current Thoughts on Gold in 2026

Before paper fiat currencies existed, precious metals such as gold & silver were used as a means of trade value and exchange. It was not until future empires started diluting these metals and replacing them with their own "legal tender" in the form of coins with more nickel content than precious metals. Over time coins with precious metals in them evolved to not having any traces of the precious metals at all.

The geopolitical shocks around the world are very gold sensitive, the metal becomes one's safe haven. Outbreaks of war, leadership changes in world superpowers can affect its price. Central banks are stockpiling to this day...with a change of Fed leadership incoming, one can only guess how gold will react post Jerome Powell.

It should be a volatile event when he relinquishes power.

Governmental Control

The ruling governments have sold the governed the idea the issued currency has value. Let that sink in for a moment.

If you want to compare what has value, as of writing, the front month contract for /GC is sitting at $4800/troy oz (a full size /GC contract is for 100 troy/oz). Meaning it takes $4800 paper dollars to own 1 oz of the God metal. So imagine how much space those bills will take, A stack of bills amounting to $5000 would likely take the space of 6oz of gold coins with the value of approximately $30000. In terms of value, I hope you see a clear winner.

Further Opinions on Cash

Paper money can be counterfeit easily with the current advancements in technology. Furthermore, I strongly believe that paper cash could be a control and tracking mechanism for illicit activity. Used by the treasury to pinpoint criminals.

Think about it. If you're a law-abiding citizen with a legitimate bank account, most of your daily life can be paid for electronically. So why would you deal in cash? It's too cumbersome.

The way I see it, if you're in physical cash, treat it as disposable income, meaning if you lose it, that's the risk you take, use it for gratuity, use it for emergency situations that may need cash, but don't use it to deal with everyday life, it's very inefficient.

In Closing

Gold is still relevant and will likely stay that way for another millennia. It doesn't hurt to own it, just make sure you can store it safely and don't tell anyone you possess it. Silver itself had an incredible run from the low teens to over $70/oz, and this is the mortal's metal. The God's metal clearly has more to go as well.

$7000?

$10000?

$15000?

Who knows.

Don't forget storage costs and don't tell anyone you have gold. The metal comes with risks, it's on you to decide if those risks are worth undertaking.

Until then, Trade Well.

Lastly

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~Asymmetric_Vol