Willem Middelkoop: The global gold reset is already in motion

Middelkoop contends that China is systematically capitalizing on market corrections to bolster its physical reserves, viewing lower prices as an opportunity rather than a signal of weakness. While official reports often track central bank buying in relatively modest increments, he estimates that true Chinese demand—channeled through multiple state institutions—is significantly higher. He points to an accumulation of over 50,000 tonnes by Silk Road nations since the 2008 financial crisis as evidence that the global financial architecture is shifting away from the U.S. dollar.

This transition is increasingly visible in central bank balance sheets, where gold has overtaken Treasuries as the second-largest reserve asset. Middelkoop notes that while Washington continues to value its gold holdings at a historical $42 per ounce to protect the dollar’s perceived strength, market forces are forcing a de facto revaluation. He views recent moves by Chinese lenders to restrict retail paper trading as a strategic effort to steer domestic savers toward physical ownership, reinforcing a long-term dual-track policy.

Looking ahead, Middelkoop remains aggressively bullish on silver, maintaining a long-term target of $500 per ounce. He argues that the gold-mining sector is currently undervalued, with free cash flow generation that rivals the technology industry. He characterizes this period as the dawn of a generational bull market in commodities, driven by a fundamental move away from Western-centric financial control toward a decentralized, metal-backed reality.