Gold breaking above $4,100 alongside a rising dollar signal, as financial strategist Luke Gromen sees it, the unravelling of the post-1971-dollar system. Luke argued that the recent surge in gold prices, despite already climbing more than $100 to above $4,100, has not yet fully captured the magnitude of the underlying shift. He stressed that China’s decision to cut off rare earth supplies to Western defence systems marks a turning point, forcing the West to confront its own vulnerabilities. In his view, this move has effectively institutionalized a broader reset, where gold now replaces U.S. Treasuries as the primary reserve asset for global central banks a structural change that he believes will not reverse.
Luke Gromen further emphasized that this transition does not mean the dollar will vanish from global use. Rather, it will continue to serve as a transactional currency, but its purchasing power will steadily erode when compared with gold. For Gromen, today’s market moves reflect the beginning of a permanent reordering, with gold reclaiming its historical role as the foundation of stability in global reserves.
Luke Gromen connected these developments to the “Brent’s milkshake theory,” noting that both the dollar and gold can rise simultaneously a phenomenon foreseen decades ago by monetary theorists known as “Another” and “Friend of Another.” He explained that as dollar borrowers are squeezed to repay trillions in debt, the rising value of gold serves as collateral, creating the liquidity needed to escape dollar dependence. This dual rise, he argued, is the clearest signal that the current dollar system is approaching its end, and that gold is once again central to the next phase of global finance.
Hear directly from top financial minds like Rick Rule, Peter Schiff, Mike Maloney, Lynette Zang, and many more. Get the latest insights on gold, market trends, and global finance. Stay ahead — subscribe now and empower your financial future!
Credit to : The Metal Mindset