The Coming Monetary Reset: Why Gold and Silver Are Poised for a Historic Surge

Introduction

The recent presentation by precious‑metals expert Mike Maloney warned that we are on the brink of a monetary reset that will dramatically reshape wealth distribution. Those who act now can capture wealth, while those who stay on the sidelines risk losing it.

The Core Argument: A Global Monetary Reset

• Historical cycles – Maloney traced money systems from the classical gold standard (pre‑WWI) through the Bretton Woods era to today’s floating‑rate dollar regime, which he calls “the most poorly designed” system.
• Current imbalance – The world now has 70‑80 times more currency than gold, with only a modest increase in gold supply. This mismatch fuels inflation and erodes fiat value.
• Inevitable reset – He believes a rapid transition back to “honest money” (gold‑based) is unavoidable, and everyone will be forced to participate.

Gold and Silver Leading the Charge

• Gold as the bellwether – Gold prices are already rising as the dollar loses value; other assets will follow.
• Silver rush – A global surge in silver demand is underway, especially outside the United States, indicating the peak is still ahead.
• Unaffordium → Unoptanium – When physical gold/silver become scarce, prices diverge from spot, creating a feedback loop that drives even higher demand.

The Short‑Squeeze Phenomenon

• Physical demand vs. paper market – Large bullion banks were heavily net‑short; the surge in retail buying is forcing a short squeeze in the physical market.
• Leverage of paper gold – Up to 300 paper ounces can be traded for each real ounce, inflating the squeeze when leases are unwound.
• Implications – As central banks unwind gold leases, the physical price is expected to keep climbing.

Gold‑Silver Ratio and Trading Strategies

• Ratio dynamics – Historically, the public shifts preference between gold and silver (e.g., late 1970s). A lower gold‑silver ratio will likely trigger massive silver buying.
• Practical advice – Convert silver to gold when the ratio narrows, but be prepared for product shortages (e.g., kilo bars).

Global Central Bank Behavior

• Russia’s ruble – The ruble has risen ~40% against the dollar, closely tracking gold, possibly due to high gold backing of its M1 money supply.
• Canada and Britain – Both have sold large portions of their gold reserves, weakening their monetary positions.
• Gold in reserves – Gold now represents the second‑largest reserve asset after the dollar, a trend that will continue.

Bitcoin vs. Gold

• Longevity – Maloney predicts 98% of existing cryptocurrencies will disappear within a decade.
• Gold’s intrinsic value – Gold’s stock‑to‑flow ratio (production roughly equal to global population growth) supports a steady, mild deflationary trend, unlike fiat’s inflationary nature.
• Distributed ledger – He acknowledges blockchain’s utility for accounting but does not view it as a true store of value.

Prospects for a Dollar‑Gold Peg

• Technical hurdles – Pegging the dollar to gold at current prices would require a valuation of >$140,000 per ounce, which would shock the global economy.
• Potential pathways – A settlement among central banks could involve gold, but any direct peg would likely cause massive market disruption.

Actionable Takeaways for Investors

• Get into physical gold and silver now – Anticipate price acceleration and potential scarcity.
• Monitor central‑bank gold leases – Unwinding these leases fuels price gains.
• Watch the gold‑silver ratio – Use it as a timing signal for reallocating between the two metals.
• Stay skeptical of fiat and most crypto – Focus on assets with intrinsic scarcity and historical purchasing power.

Conclusion

Mike Maloney’s presentation paints a picture of an imminent, large‑scale monetary reset that will reward those who own physical gold and silver. The combination of a collapsing fiat system, central‑bank gold lease unwinding, and a global silver rush creates a perfect storm for a historic wealth transfer toward precious metals.

The key takeaway is that a rapid monetary reset is looming; positioning yourself with physical gold and silver now is the most reliable way to protect and potentially grow wealth as fiat currencies lose value.