KGC

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Post is by: JamOzoner and the url/text [ ](https://goo.gl/GP6ppk)is: /r/CryptoMarkets/comments/1og7nyy/us_foreign_debt_federal_reserve_tied_stable/ Your thoughts on this AI generated assessment... Two Gold Market Scenarios +/- Crypto Federal Reserve Tied Stable Crypto A: The Great Repricing Scenario This scenario integrates de-dollarization, declining U.S. foreign debt holdings, and accelerating global accumulation of gold reserves. The core premise is that gold will act as a neutral settlement asset in response to systemic debt saturation and geopolitical fragmentation. • Context: Central banks, particularly in Asia and the Global South, are shifting from U.S. Treasuries toward gold to reduce sanction and reserve risks. • Physical Tightness: Vault and refinery inventories are declining sharply. Silver shortages amplify gold demand as investors seek physical substitutes. • Price Outlook: Model projections point to a 3–10× repricing of gold — from $2,650 to potentially $30,000/oz — as global liquidity rebalances. • Macro Linkages: Lower Treasury demand → higher yields → weaker confidence in the dollar → stronger gold and commodities. • Political Resilience: Even major political transitions (e.g., leadership change in the U.S.) cannot undo the embedded inflation and debt structure driving gold’s long-term value. Investment Implications: - Core Holdings: Royalty and streaming firms (RGLD, SAND, GROY) for defensive compounding. - Producers: AGI, KGC, EGO, CGAU, EQX, NGD, GAU for free-cash-flow torque. - Developers/Explorers: SA, VGZ, USAU, NFGC, PZG, DC for takeover optionality. Economic Chain Reaction: Sell Treasuries → yields up → dollar volatility → safe-haven flows → central-bank bullion accumulation → physical scarcity → gold repricing. B: UST-Backed Stablecoin Redemption Shock Scenario In this scenario, stablecoins are collateralized not by cash but by U.S. Treasuries, embedding bond-market risk into the digital-asset system. Redemption stress in these stablecoins forces issuers to sell Treasuries, destabilizing yields and creating a chain reaction into gold markets. Mechanics: • Adoption Phase: Stablecoins buy Treasuries → modest yield suppression → slight support for gold. • Redemption Stress: Treasury sell-offs to meet withdrawals → higher yields → confidence loss → gold spike. • Systemic Event: Simultaneous redemptions trigger Fed backstops → currency debasement fears → multi-sigma gold repricing. Miner Leverage Bands: - Base Case: Royalties ≈ 1×, Explorers ≈ 1.6× gold move. - Stress Case: Royalties ≈ 1.3×, Explorers ≈ 3× gold move. - Systemic Event: Royalties ≈ 1.8×, Explorers ≈ 5× gold move. Strategic Allocation: - Defensive core: RGLD, SAND, AGI, KGC, EGO. - Beta exposure: EQX, CGAU, NGD, GAU. - Optionality sleeve: SA, VGZ, USAU, NFGC, PZG. Bottom Line: Backing stablecoins with Treasuries imports bond-market liquidity risk into the global currency system. When stress emerges, gold becomes the only universally trusted, unencumbered collateral. Thus, both de-dollarization and stablecoin evolution reinforce gold’s ascent from commodity to monetary anchor. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoMarkets) if you have any questions or concerns.*

Confident_Elephant_4

My KGC is up 4% just today. My Bitcoin isn't up that much even though Bitcoin should be up much more.

Zhuyi1

Yeah except all the 51% attacks have occurred on POW chains: BSV, ETC, BTG, KGC, SHIFT