Central Banks Flee Dollar-Based System, Turn to Physical Gold

Central banks around the world are quietly repatriating their physical gold reserves from New York and London vaults, where they were once stored as a matter of faith in the Western financial system. This historic shift is driven by concerns over inflation, rising interest rates, geopolitical tensions, and an increasing mistrust in the dollar-based system.

According to Poonam Sharma, 'the world is awash in debt,' with the US alone owing about $40 trillion and now borrowing just to pay interest. As rates rise, cracks are starting to show, with China, Brazil, and India cutting their holdings of U.S. Treasuries.

France has withdrawn 1,209 tons of gold in the last year, while Sweden and India have repatriated hundreds of tons each. The Reserve Bank of India has been quietly adding to its gold reserves and repatriating them in an era of rising global uncertainty.