According to Willem Middelkoop, Founder and CIO of the Commodity Discovery Fund, the BRICS’ formal invitation to Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia to join the bloc has brought the world to a “very dangerous stage” and a crisis for the United States. one step closer to the next big conflict. Therefore, Middelkoop expects very strong movement for the gold price in the next 5 to 10 years.
“ We are heading towards a very dangerous stage!”
Willem Middelkoop said, “I don’t feel comfortable with all these developments. We shouldn’t just call it World War III. But we are heading towards a very dangerous stage.” In this context, Middelkoop continues with the following statement:
This BRICS conference is the next step in the financial economic battle. I’m afraid it’s all connected and I’m not the only one to warn of a possible World War III scenario.
Middelkoop points out that the next big risk facing the world is a war between the US and China. In line with this, “The biggest risk for all of us these days is that this fight between the USA and China will one day turn kinetic. The world is becoming a less and less stable place.” says.
Is a new monetary system backed by gold and commodities coming?
Willem Middelkoop points to the expansion at this year’s BRICS summit. Because the members emphasized that the next summit will focus on moving towards some kind of common currency. Russia and Brazil have been the biggest proponents of the BRICS common currency, which will be backed by commodities and rival the US dollar. “If this is the beginning of Bretton Woods III, if this is the beginning of a new monetary system centered on gold and commodities, this is the highlight of the last few decades,” Middelkoop says.
Have we come to the end of a dollar-based system?
Willem Middelkoop says that the international monetary system is “man-made” and it is possible to change it. Middelkoop expresses his views on this matter as follows:
We can move from a dollar-centered system to a new phase where we can use a new common currency for the international monetary system. It may be a good idea to restructure debt and revalue gold.
Central banks bought gold at record speed last year
cryptocoin.com As you follow, central banks around the world have increased the amount of gold they hold. Accordingly, central banks bought gold at a record pace last year. It is therefore very likely that gold will play a key role in the new system. Based on this, Willem Middelkoop makes the following comment:
All countries east of Germany are hoarding large quantities of physical gold. This is a sign in itself. Because it clearly shows that countries expect something to happen in the monetary system. Even the Governor of the Dutch Central Bank said that the Dutch still have a lot of gold because they need it to restart the system if something goes wrong.
Which country will make the first move for the gold-backed currency?
Middelkoop does not rule out the possibility that the US will surprise other countries by making the dollar back gold. He explains his views on this matter as follows:
This also applies to China, Russia, the EU and the USA. If you increase the value of gold to a much higher level, you can save the balance sheets of central banks. And I’m still waiting for that to happen one day. Who will act first? Who will be the first to start backing the currency with gold? As central bankers, there are very few steps you can take to save this monetary system.
Big reset: What does it mean for the gold price?
Willem Middelkoop expects a very strong move in gold in the next 5 to 10 years. In this direction, he says that it is possible for the price of gold to go up to 10 thousand dollars. He supports this prediction as follows:
You can also look at the ratio between gold and the amount of fiat money in circulation. We’ve seen gold recalibrate and value much higher in the 1930s, 1970s, and between 2000 and 2011. So once gold starts to rise, it will go up 5x, 8x, 10x, especially in a revaluation scenario. So we expect gold to reach $10,000.
