Vicenzaoro Highlights, September 2024: The Role of Gold in the War Scenario

In a highly complex global geopolitical scenario with a “great war” - as Limes defines it - consisting of the conflicts in the Middle East and between Russia and Ukraine, together with those less centered on, such as in Yemen, which we only became aware of when it affected naval-route logistics, the question of the “role” of gold is becoming increasingly topical. So how does it fit into these dynamics? «This is a century of sanctions,» explained Aresu. «From 2000 to 2021, those imposed by the US have increased ninefold, acquiring such power as to limit commercial transactions. In fact, by using the dollar, some countries and companies are excluded from traditional trade circuits because of the problem of the dollar's dominance, even in reserves. China's global rise has already earned it manufacturing and commercial dominance, but not financial. This is where the issue of gold comes in, since it bencomes the real alternative to the dollar.

A growing number of countries that are highly important from a demographic and energy flow point of view, as well as in terms of trade and economy, want to disengage from a perfect adherence to the dollarcentric system. Because, as the conflict with China increases, the system becomes more aggressive. And to avoid sanctions and create further opportunities for myself in the future, what can I do? I can diversify by investing in gold. But not everyone thinks this way. Warren Buffet, the world's largest investor and lover of liquidity, has always been against investing in gold. Buffet doesn’t like gold, because, in his opinion, it is a bet on fear and Warren does not bet on fear. And he is partly right because the truth is that, due to their structure, these conflicts do not have an easy solution. That is why the bet on fear, even with its ups and downs, is still a good be.»