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Liberty and Finance: This may Take Down the Paper System

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The world of precious metals is undergoing a significant transformation, driven by advancements in blockchain technology, shifting geopolitical landscapes, and changes in supply and demand dynamics. In a recent in-depth discussion between Kaiser Johnson and Andy Schectman, CEO of Miles Franklin, the intricacies of the current precious metals market were explored, shedding light on the potential disruption of traditional paper gold systems by tokenized gold and the implications of emerging geopolitical and economic trends.

The conversation began with an examination of current precious metals specials, before delving into the role of blockchain technology in revolutionizing the gold market. Schectman explained how tokenized gold could offer a transparent, fully allocated, and instantly transferable alternative to the existing paper gold system, which has long been plagued by rehypothecation and fractional backing. This new paradigm has the potential to collapse the traditional paper gold market, as investors increasingly seek greater reliability and the ability to take physical delivery of their assets.

The importance of transparency, auditability, and deliverability in any blockchain-based gold solution was emphasized as crucial for gaining investor confidence. As the COMEX and LBMA systems face declining trust and fragility, exacerbated by central banks repatriating gold and a surge in physical delivery demands, the need for a more robust and trustworthy system becomes increasingly evident.

The discussion then turned to the broader geopolitical landscape, where the emergence of the BRICS+ nations’ gold-backed unit (“the unit”) is set to challenge the U.S. dollar’s global dominance. This new system, currently in beta testing, leverages cross-border payment technologies to bypass Western sanctions and aims to internationalize the digital yuan through a network of vaults across the Belt and Road Initiative countries.

Schectman highlighted the significant accumulation of physical silver and gold by sovereign entities, as well as the structural supply-demand imbalances caused by increased industrial use—particularly in AI data centers—and strategic stockpiling by governments. The recent addition of silver to the U.S. critical minerals list underscores the growing importance of these metals in the global economy.

As the precious metals market continues to evolve, Schectman emphasized the need for a hybrid strategy that combines physical holdings with tokenized assets to mitigate risks from technological or systemic failures. The fragility of complex supply chains and infrastructure highlights the importance of diversification and a cautious approach to investment.

Schectman encouraged investors to take note that the smartest market participants—central banks, commercial banks, and sovereign wealth funds—are actively accumulating physical metals, signaling a major price and supply shift that will eventually reach retail investors. He stressed that holding physical metals remains the most reliable wealth preservation strategy amid fiat currency debasement.

The precious metals market is on the cusp of a significant transformation, driven by technological innovation and shifting geopolitical and economic trends. As the conversation between Kaiser Johnson and Andy Schectman highlights, tokenized gold and the emergence of BRICS+ are set to play a major role in shaping the future of gold and silver investments. Investors would do well to take note of these developments and consider a hybrid strategy that combines physical holdings with tokenized assets.

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For further insights and information, watch the full video from Liberty and Finance. With precious metals specials currently available and more developments on the horizon, it is an exciting time to be involved in the world of precious metals.

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