This episode examines the forces driving the significant increase in the price of gold through Q3 2025. The core assertion is that traditional market elasticity related to consumer jewelry purchases and Western Exchange-Traded Funds (ETFs) has been supplanted by the inelastic purchasing behavior of global central banks. Research cited from institutions like the World Gold Council confirms that while jewelry demand remains highly price-sensitive and ETFs are now reactive, central banks are accumulating record tonnage for reserve resilience and as a hedge against rising distrust in the dollar-based global monetary system. This structural shift means that official sector buying, combined with momentum-driven demand for physical bars and coins, is now the primary marginal force determining gold's valuation, often ignoring prevailing market prices.
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