Big Money Is Turning To Gold – Here’s Why You Should Pay Attention
Peter Reagan

A 718% surge in physical gold deliveries reveals a major shift among institutional investors, central banks and what we call “the smart money” set. What do they know that you don’t?

For the average person, what organizations with large amounts of money do isn’t usually relevant to their day-to-day lives. 

Sure, if it is a celebrity or politician, then their big money is interesting to many people in the same way that neighborhood gossip whispered over the back fence used to keep people’s attention for hours when the world was small towns.

Or it’s interesting to people who stay glued to gossip shows and clickbait celebrity gossip sites online.

But institutions? Who cares what they’re doing with their money? It’s not like it affects you or me, and it’s not like I'd be able to do things that they do. There are both legal and practical limits that allow people and organizations to invest and take advantage of opportunities that you and I can’t. 

But even if you can’t take advantage of many of the opportunities available to those with large amounts of money, what they are doing is still worth paying attention to because…

Big money often points the way to trends…

Trends that you and I may be able to take advantage of… if we’re smart.

And one of the trends that we’re starting to see is something that you and I can, and should, pay attention to. 

Now, to give some background for context about what I'm about to talk about, realize that when most people think of investing in precious metals like gold, they often think of gold on paper.

Indeed, much of the institutional use of gold over the years has been in terms of promises on paper without any physical gold actually changing hands.

This was the way that paper money as we know it came about. Instead of carrying large bags of gold coins around, a bank would hold the gold for you and issue bank notes which were receipts for the money that they were holding for you. You could, then, trade those banknotes with other people who would be able to redeem them at the bank for the physical gold.

(In case you’re wondering, according to the World Bank, the Bank of England was the first to issue banknotes. This is the “money" system which was eventually manipulated and mutated into our current fiat monetary system.)

Now, you may be saying, “That’s all fine and dandy, by what does banknotes and gold only on paper mean to me?”

Fair question. The answer is that…

We’re seeing a shift towards physical gold by big money.

Clive Thompson, a Retired Managing Director of Wealth Management at Union Bancaire Privée UBP SA, Geneva, Switzerland, writes,

May 2024 saw 2,750 delivery notices [for gold deliveries]. May 2025, by just the 14th, has already recorded 22,508 delivery notices.

That’s a massive difference in gold deliveries that are in process!

And that happened in only a year’s time!

How much of a difference is this increase?

That’s a +718% year-on-year change—larger than any monthly increase so far this decade.

And at the time for that writing, there was over half of the month to go!

Think that number will go higher? Almost certainly it will go much higher.

You may be thinking that this is probably large banks and national banks (like the Bank of England) that are driving this trade in precious metals, and you’d be somewhat right. About 20% of those gold purchases are going to banks.

The other 80%? Again from Thompson:

Someone with mega purchasing power is buying and taking delivery.   They are taking "home" thousands of bars worth over $300'000 each.  This not mom and pop prepping with guns, grub, and gold.  This is someone who "knows".   They don't care about the price becuase they won't lose.  It'll help them to get to the other side when the reset comes.

Those are very large purchases, and if they are buying in those kinds of quantities without concern for price, then it could be smart for us to put on our deerstalker hat and play Sherlock Holmes to…

Deduce their motivations.

Or we could simply go back to Thompson, who, in another post, writes,

The consensus view is that the debt [of Australia, Canada, European Union, Japan, United Kingdom and the U.S.A.’s governments] will be inflated away.  

Here in the U.S., we’ve had a taste of that with the soaring inflation over the last five years from the previous administration’s spending policies.

Imagine that magnified, and it’s not hard to envision a Weimar Republic or Zimbabwe hyperinflation scenario being very realistic in the United States and across much of the world (since every country’s government works off of some fiat monetary supply).

If you aren’t familiar with those historical instances of hyperinflation, though, Thompson lays it out for us:

If it ends in inflation, it will most likely be high inflation, leading to hyper-inflation.  In a hyper-inflation it becomes almost impossible to change your money into anything tangible.  People will buy anything they can, whether they need it or not.  Gold and silver will be unobtainable.  Nobody will sell it to you for worthless paper.  The shelves will be empty.  Crops will be stolen before they are mature

In that kind of situation, whoever has gold or other precious metals will be king (or queen) because they will have something to trade with that still has real value.

I don’t want that situation for anyone, but we do need to face the reality that this could really happen and not just 50 or 100 years down the road, but within the next few years if governments don’t get their acts together.

And that’s why I can’t urge you strongly enough to diversify into inflation-resistant stores of wealth such as precious metals now.

If you have physical precious metals, you have something that will always have value, that people actually need and use in the real world and that you will always be able to trade with because other people want it and need it.

You can research this subject even more about why to consider diversifying into physical precious metals, and if you’re ready to move ahead, we can certainly help you with your precious metals purchases.

 

 

Peter Reagan is a seasoned financial market strategist at Birch Gold Group with over 15 years of experience in the precious metals industry. He has been featured in several leading publications, including Newsmax and Zerohedge. At Birch Gold Group, Peter leverages his deep market insights to help educate customers on how they can diversify their savings into gold and other precious metals. His commitment to education has made him a trusted thought leader in the field. In addition to the Birch Gold website, you can follow Peter on LinkedIn.

 

www.birchgold.com