We’re in the ‘Final Inning’ of Dollar-Based System: Willem Middelkoop

We’re in the ‘Final Inning’ of Dollar-Based System: Willem Middelkoop

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commodity culture sent you and today’s
guest is an author who writes about
economics and financial markets and the
founder of the commodity Discovery Fund
we’re going to be getting his thoughts
on several Commodities along with the
broad market and how geopolitics play a
role in all of this it’s Willam middle
cope welcome back to the show thanks for
the invitation good to be back yes now I
want to start off with geopolitics here
and what appears to be some escalating
global conflict um I’m wondering as we
see this war potentially expand between
Iran and Israel other players
potentially getting involved you know if
the US gets directly involved obviously
that’s a huge
development how far do you think this
escalation could potentially go and if
things do really turn into a World War
III type of scenario with the US getting
directly involved how do you think that
could impact Commodities if you listen
to previous interviews I’ve been given
the last two years um in a few of those
interviews I’ll already mentioned that
we are entering a World War I type of
conflict but it will be all different
type of conflict compared to the first
and the Second World War this is much
more hybrid
situation and um in in 2013 I wrote the
big reset and the big reset has this
thesis that we’re in a financial endgame
for the current current dollar system
every 80 to 90 years we experience a big
change in the financial system in the
geopolitical situation in which we get a
new leader
um well new leader in the world world
now we’re in the dollar system um the
dollar system started in 1944 with
Breton Woods uh before that we were
in we had the pound sterling as our
world Reserve currency and we had the
British Empire and now of course we have
China becoming um so
powerful that the US um becomes a little
frightened and you have this huge
conflict where the Western
Alliance you could say so the US and the
Western friends including Australia and
Japan and South Korea are confronted by
a huge block coming from the East it’s
the brics blocks the brics countries but
the
bricks uh Corporation is getting much
larger now you have so many new com
countries willing to join the bricks
block and and for me World War I is is
is like the confrontation between this
Western us block dollar based uh dollar
centered block and the
Eastern um um bricks block which is
working on their own currency which
working on their own Financial system
which working on their own trading
system and for us as commodity investors
and that’s why I spent so much time
researching this and thinking about this
um I think Commodities and especially
gold and silver will
be part of the new system coming from
the East and zultan posa who’s This
brilliant analyst who was with KY swis
well KY swis is not there anymore
there’s a great example of what happens
in reset you know Banks like C ssf and
Sultan posa wrote two years ago that
we’re witnessing the birth of a new
monetary system coming from the East
centered around Commodities very
interesting now where do you think we
are in this financial end game obviously
we saw some rumors last year that the
bricks were going to announce a gold
back currency that didn’t quite come to
fruition um we now have bricks holding a
number of meetings this year in Russia
with member nations uh Alistair McLoud
is pointed to the fact that he believes
part of this process is developing some
sort of framework for eventually
launching or announcing the launch of of
an alternate form of potential gold
backed or Commodities backed currency
which could be happening later this year
is this something that’s imminent or is
this something that could be years or
decades away in your view when we talk
about resets monetary resets which
happen every well 80 90 years or maybe
you could say every 40 50 years because
in
1971 uh we took the dollar of the gold
standard and that could be called Breton
Woods 2.0 but these changes
um only take
place once in your lifetime almost so it
it and people always expect these
changes to come very soon and be very
abrupt like it’s binary it’s zero or
it’s a one but it’s more like a process
and now we’re in the end game of the
current dollar system so we’re the final
inning of the current dollar system
but that doesn’t this doesn’t mean that
the dollar will collapse within the next
two to three years but 10 years from now
will conclude that the the the power of
the almighty dollar is is is quite a bit
um less than it was 10 years ago so um
we’re very early in the game um which
the
bricks um Club is is is starting to play
so that’s very early and it will take
take several years and maybe even a
decade before this bricks Alliance will
become
really powerful and um so powerful that
we in the west need to walk uh and talk
their book instead of of the US book and
we we are here in the in Europe and
we’re somewhere in between the west and
the East currently Europe is still
firmly in the US block um the dollar
center block
but there’s so much happening and coming
from the East that I think in Europe
we’ll have to decide
whether we will start cooperating with
the bricks
countries and stop seeing them as their
enemy very fascinating breakdown there
um I want to talk about the broad market
for a moment because over the past let’s
say few years people have been pounding
the table that there’s an imminent
collapse coming for the broad market for
the S&P in the NASDAQ um obviously last
year we we saw quite a downturn but then
things really picked up again and
continuously reaching all-time highs in
both indices we we are starting to see
uh some weakness in the S&P in
particular over the past couple of days
quite a draw down um but it it always
seems like there’s blips along the way
but seems to recover and back to
business as usual what what do you see
when you look at at the S&P and the
NASDAQ are are these charts in your view
that have strength for the long term you
could analyze those charts by pointing
to let’s say Elliot wave count that
we’re in the fifth we’re
trying to set a top in the fifth uh wave
which is the end of a very long well
well bull market actually the bull
market for the Dow Jones started in 1942
at uh the depth of the second world war
when the Dow Jones was trading at 100
and it shows you know markets bottom not
after a war but in a war and then we’ve
had this incredible rise for the Dow
Jones
um to a 30,000 over 30,000 and now we
could say um that there’s a major toop
developing in Western Equity
markets
um but since we have so much debasement
of currencies and with so much money
printing I wouldn’t be surprised that
stocks could go even higher not because
every everything goes well in the
economy but look what happened to
Venezuela the stock exchange there and
look what happened to the Zimbabwe Stock
Exchange they said all new records
because of hyperinflation and debasement
of currency so we saw the same during
the Yar Germany years in the
1920s um but I I agree the stock market
the broader stock market seems to be
topping out also if you look at
valuations and and um and and other
indicators so I wouldn’t be surprised to
see the start of a long
and strong correction over the next few
years and that could actually start in
the second half this year maybe we set
the top already but uh a a a process of
bottoming and Topping after such a long
move will also take many months and many
quarters and maybe longer but the res um
the risk on the downside are becoming
more apparent and I think the commodity
space is is totally different commodity
stocks do poorly when tax stocks do well
we’ve seen that at the late 1990s as
well so I think commodity stocks are
have been bottoming out and have just
started a revaluation process to the
upside while tech stocks and the broader
Market is in the process of topping out
and could see uh more serious
corrections but that could take years as
well to play out so I don’t expect a
crash in the very near term well let’s
hone in on gold here if the scenario you
describe plays out over the course of
let’s say the next decade or so the US
dollar loses its Reserve currency status
we see the bricks Nations start to
transact maybe with a gold back currency
Commodities back currency or we see gold
in some form or another reintroduced
into the global monetary system um does
that mean at the the moment gold is
still quite
undervalued relative to to what it the
the potential price that it could be as
we look forward into the future yeah um
the price of gold always follows the
amount of well liquidity in the system
the amount of money in circulation the
amount of debt uh based on these this
ratio um gold could go much higher and
in a official more formal gold
revaluation plan where gold is being
reintroduced into the system um you
could expect gold being revalued even
north of 10,000 uh dollar pounds I think
currently we’re in a revaluation process
where Market
forces um bring um the gold price up um
today we reaching 2,400 again I wouldn’t
be surprised to see
$3,000 gold with in the next 12 months
even City group has um
published um their prediction towards
that Target I think earlier this
week um and and silver is especially uh
of interest because silver is still
trading almost 50% below its
1980 and 2011 top of $50 so there’s so
much catching up to do for silver and we
run the commodity Discovery Fund and we
are adding to our silver positions quite
massively in the last few weeks because
we see uh many indicators that silver
could have a big run and if you look at
the volume indicators the volume of
trading in the S and SJ you see a very
strong jump in the volume even much more
than in the GDX well let’s touch on
Silver then um because traditionally
what I’ve heard from most experts in the
sector is that silver tends to play
catchup with gold and then surpass it in
the latter stages of a precious metals
bull market however we’ve seen quite a
strong performance put in by silver
recently sitting at around $28 as we
speak um seeming to kind of move in
tandem with gold is silver performing
differently this time around than it
traditionally does um well what what are
your thoughts there no not at all silver
tends to um have a lag on on on
development of the gold price um so it’s
it’s not it’s not too strange that
silver will be breaking out a few months
after we’ve seen a gold uh break out out
of the gold price and you’re right once
this rally starts in silver it
often um ends up um well going much
higher um than than than the rally you
see in Gold uh um from percentage point
of view so um silver could easily go up
50% while uh a 50% move for gold will be
wow that that would be quite something
and especially if you look at the go the
silver shares in previous Ries like
we’ve seen in 2020 2016 the silver
shares on average dumped between 100 200
or even over 200% in a relatively short
time frame because that so much leverage
there and especially now the
valuations of silver stocks um have
decreased so much in the last four years
there’s there’s a lot of upside well I’m
wondering if you’re seeing from your
perspective um and the commodity
Discovery Fund if you speak to
institutional investors and you’re
seeing any sort of Interest growing when
it comes to the precious metal space
because obviously if we start to see
more institutional money move into
especially like silver that could be
quite significant um have you had any
discussions like that and and what are
you seeing out there well our investor
base is high net worth and ultra high
net worth family offices we don’t meet a
lot of institutional people we try to
avoid that um I I I can assure you that
institutional investors are not looking
at Silver they might be looking at gold
now but they play they will they will
play it very safe the larger name I
expect that’s why we took a position in
new mining it went down so much and when
the generalist investors would return
they will buy baric and new and the GDX
uh but if we look at at at at our
investor base High worth ultra high
netw uh they’re much more ahead of the
curve uh they’ve done their homework uh
many of them they see the value out
there they’re watching all these reset
um develop Vel Ms they see what’s coming
from the East what’s happening with the
bricks countries and many of these
people these investors are trying to
grow their positions in Commodities and
also in precious metals and some of them
are buying quite a bit of silver even
physical silver so uh it’s more like the
smarter money is is really recognizing
the value here we don’t we don’t spend
uh a lot of money on marketing and
advertising but after the 2020 covid
crash and then the when the inflation
arrived investors really came knocking
um on our door and we even had to um
well we had to change our
uh our our investment was always
possible in our font for 25k but we we
we set it to 50K because there were too
many small investors wanting to get an
allocation in the two into a commodity
based fun when it comes to the gold and
well let’s focus on gold miners first
obviously some of them have woken up uh
the the majors definitely uh along with
the price of gold is is there still an
opportunity there do you think um in in
the majors let’s say or is now a time to
potentially wait for a pullback what
what are your thoughts on the gold
mining space at present oh there there’s
still so much value out there look at uh
new mon we started to build a position
new mining around 30 we even bought uh
around 29 and I think we’re around 40
now uh so we only had the first the
first recovery uh Newman could easily
double in the next 12 to 18 months same
goes for barck same goes for all these
shares so we had a pullback last week uh
actually I was just looking at some
graphs as we speak we see a breakout for
gold and
silver uh of the last correction in the
last few days so I think this was only
temporary
correction uh we might see a um a next
leg up for the precious
metals and and as said there’s still so
much value on on on in the the listed
mining um companies uh who have these
gold and silver projects and so when it
comes to the silver
miners what what do you look for there
because finding a pure play silver Miner
is obviously much more difficult gold
you can kind of take your pick there’s a
huge huge amount of stocks to choose
from so how do you find and evaluate
silver stocks it’s very hard actually we
gave up so we just buy the S
SJ um
I um in our portfolio we only have a
very few individual silver names a
silver being the best we concentrate on
the best discoveries the tier one tier 2
discoveries worldwide uh metal agnostic
so in silver we only invested in the
very few a silver discoveries which are
over 100 million ounce of
silver uh in their first resource
estimate I silver dis published their
resource estimate is over 300 million
ounce of silver discovered in Morocco
great country to be mining cheap country
to be mining so we have that’s our
largest position uh we have a position
Abra silver um that’s that’s uh quite a
good Discovery as well but that’s in
Argentina but most of our investments in
the silver space is just the ETFs
because we know from experience once
silver starts to reevaluate higher the
whole basket goes up and even the worst
companies in this space will go up most
because they came down so much I wanted
to shift to the FED here because it
seems like they’re completely unable to
tame inflation recent CPI prints coming
in hotter than expected and the numbers
are ridiculous anyways they’re not even
real they’re so what hedonically
adjusted whatever you want to call it um
whatever fancy term you want to use for
basically lying to everybody um can they
afford to cut rates here where people
are talking about you know they’re going
to be forced to cut they must cut um can
they afford to do this or do you think
that they’re just going to move the goal
post and suddenly say well you know 4%
3% inflation really isn’t so bad it’s
it’s probably actually good for the
economy what are your thoughts well if
you have so much depth then inflation
eventually is good so but of course
they’re stuck
um they
um it’s very hard for the Federal
Reserve to do the right thing now and I
think the Federal Reserve is just
waiting to see what breaks first and
once
markets or parts of the system are
starting to break down they will react
and start lowering interest rates but I
I agree given the latest inflation
numbers they still have to wait but the
economy is is not very strong the
official numbers might look good but as
so much in the economy which is not
going well especially in commercial real
estate credit card
debts uh car loans and I expect things
to start breaking down within the next
six to 12 months and this Autumn winter
might be uh well might become a bit more
difficult and that would explain a a a
more broader correction as well and then
the FED will need
to come and step in
again and don’t forget that there’s
another huge problem about financing the
budget deficits in the
US and they are not enough willing
buyers anymore out there for the
treasures so the markets needs to be
supported in a big way and this is we’re
talking trillions and trillions and that
will all play out in the next 12 to 18
months so expect more more QE to arrive
pretty soon and I’m wondering from your
perspective in Europe are you watching
what the ECB is doing are you watching
the European economy wondering what
you’re seeing there I’m in Europe as
well I’m in Serbia which is outside the
EU but our currency is actually pegged
to the euro so I I think we would be
affected as well in in terms of a
downturn there so what what are you
seeing when it comes to the European
economy at the moment well of course we
watch it because we live here but um
what what happens in the US and what
happens with the bricks Alliance is more
important from a system point of view um
I think the ECB will be pressured as
well will feel pressured as well to
lower start lowering rates uh in the
next 12 to 18 months because um I think
the economy will will start to weaken a
bit
more um of course um price of oil and
copper and many Commodities are starting
to rise again so this will increase
inflation pressure I’m I’m afraid that
inflation comes in in waves often three
waves we’ve had the first uh I think the
second wave is starting to materialize
so it it will be very interesting to
watch how the central Bankers uh are
starting to um
well um to to change their policies well
one commodity which would appear to be a
strong performer no matter what happens
with the economy and markets is uranium
and that simply because this shift to
nuclear energy seems to be happening
across the board and is moving forward
the amount of reactor extensions
restarts build outs happening around the
world is quite significant um along with
extremely tight Supply especially after
we’ve seen the world’s largest uranium
producer because Adam prom missed
targets last year they’re going to miss
this year it appears and into the future
it’s kind of very murky there um how do
you see the current set up for Uranium
yeah it’s very positive we’ve been
watching the uranium market for years
pointing to the bottoming out in 2015 16
17 uh build a long position especially
in NextGen energy um who’s responsible
for the well the most valuable new
uranium Discovery in in
decades um a company Grew From a market
cap of 30 40 million when we first
invested in it to over it’s over three
billion I think now uh we still maintain
our core position um
fortunately uh if we look at uh supply
and demand for Uranium you’re right we
currently have some 400 nuclear reactors
in operation worldwide another 400 are
being planned or built so you’ll see a
huge increase of demand and um that
there not enough new uranium discoveries
and the prices have been so low that
there wasn’t any incentive to open and
mind uh the contrary many of the uh
producers close down uh projects some of
them are being restarted some of them
can be restarted but I think uranium
prices will stay strong this will stay
uh uranium will stay in a boom market
and there’s more money to be made
because it’s such a small space and and
the quality names you know are are very
few um we have a few of those these
individual names and then of course we
also invest in the UR the uranium ETF
and speaking of uranium we saw some
jurisdictional risk come into play in
nier with the coup that occurred there
causing a collapse in the prices of a
lot of the equities there was a recovery
and then the political situation became
further muddied by the government in
nier saying okay we don’t want anything
to do with the US military we’re
canceling our agreements with them um so
now things are very unclear in the
region and we saw a collapse in the
equities again is is ner a place where
you would avoid at the moment um is it a
buying opportunity for for those who
have some risk capital and how do you
assess jurisdictional risk when it comes
to the mining space in general well we
can accept quite a bit of risk because
we spread our um over 100 million euros
ass on management over let’s say uh
almost 100 different Investments
but we certain countries we don’t touch
we don’t touch Venezuela or Russia or
China um and also we we don’t touch ner
or Mali but we do we do investments in
the western africas but like Guin and C
Divo and um we feel comfortable there uh
but Mali and niir it’s it’s it’s it’s a
different part um of the world where we
don’t feel too comfortable to invest
interesting yeah I was looking at a at a
gold producer that had most of their
operations in Mali and um decided to
look elsewhere once I started to look
into that country so I I definitely hear
you there although I do I do have uh I
am invested in global Atomic in nier
just holding for now um definitely not
deploying more Capital with the
situation like it is we wish you luck
well yeah it’s not a large position so
all good thank you it yeah yeah yeah um
well thank you so much for joining us
today William uh a fantastic
conversation for those who want to learn
more uh could you fill us in a little
more in the commodity Discovery Fund you
mentioned 50k minimum investment any
other information you could give us
there and if there’s anywhere else you
want to direct people online feel free
yeah we’re a dutch-based uh fund uh but
we are open for investors worldwide even
from the US and Canada we use its fund
um highly regulated
we have almost 2,000 individual
investors uh mainly from the Dutch
speaking countries um I’m quite active
on Twitter you can follow find and
follow me there and I have a patreon
account which I will send you the link
for the show notes for people who want
to stay on top of the whole reset uh
process and developments great well I’ll
put links to all of that in the
description below thank you so much
William once again for coming on and
sharing your knowledge with the audience
was a pleasure and thank you for joining
us today as a reminder this episode is
sponsored by Ark silver gold osmium
visit their website at argo.com and
contact owner Ian everard today at
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Willem Middelkoop believes the world is reaching a turning point when it comes to the global monetary system, and Western dollar supremacy is being challenged by the Eastern BRICS alliance. Willem notes that gold will be a massive beneficiary of this once-in-a-lifetime event, along with other commodities, such as silver, uranium, and more.

Visit our sponsor, ARK Silver Gold Osmium: https://arksgo.com
Contact them at (307) 264-9441
Ian@ArkSGO.com

Follow Jesse Day on X: https://twitter.com/jessebday

Commodity Discovery Fund: https://en.cdfund.com
Follow Willem on X: https://twitter.com/wmiddelkoop
Willem on Patreon: https://www.patreon.com/user?u=84858815

00:00 Introduction
01:29 Escalating Global Conflict
04:50 Final Inning of the Dollar System
07:47 S&P 500 and NASDAQ
11:32 Is Gold Undervalued Right Now?
13:51 Forecast For Silver
15:39 Institutional Investment in Precious Metals
17:58 Gold Mining Stocks
19:19 Silver Mining Stocks
20:56 The Fed’s Next Move
23:29 European Economy
24:48 Uranium Outlook
27:01 Niger and Juristictional Risk

#usdollar #gold #monetaryreset