The Investment Scientist

Yesterday, the price of gold dropped 10% in one day. Even with that decline, it is still up 12% this year and up 84% since the beginning of 2025. Today, I will write a bit about gold because I have built a small position for all of my clients since 2022, after the Russia-Ukraine conflict started.

Remember when the US and EU froze Russia’s foreign reserves? That move, which was intended to hit Russia hard, sent a chill through central banks everywhere, especially in the Global South. Until then, the US dollar had served as a reserve asset in many sovereign central banks, meaning that they needed to acquire US dollars before they could issue their own currencies. 

The Great Dollar Diversification