03
Jul 2025
Bring the Gold Home: Global Shifts in Power, Policy, and Precious Metals
Spot Price Update: YTD gold is up 25% and silver is up 24%. Check out this week’s God & Gold article for a more in-depth review of pricing.
For the latest spot pricing and performance charts, click here.
Vaults, Votes, and Volks: Germany and Italy—the world’s second- and third-largest holders of gold reserves—are under growing domestic pressure to repatriate over $245 billion worth of gold stored in New York’s Federal Reserve vaults. Germany has about 1,200 tons held there; Italy, nearly 1,177 tons, or 48% of its total reserves.
Calls for action are being led by mainstream political parties and citizen-led groups. The shift comes amid a broader trend. The World Gold Council’s 2025 report shows that 43% of central banks plan to increase gold holdings, while only 7% are willing to store it abroad, down sharply from past years. Domestic storage has risen to 59%, up from 41% in 2024.
As concern over sovereignty and economic resilience grows, so too does Europe’s resolve. What was once a quiet logistical decision is now a full-blown geopolitical statement—and the message is clear: bring the gold home.
Sound Money Rising: Florida and Texas are leading a resurgence in "sound money" principles, enacting laws that recognize gold and silver as legal tender and eliminate sales taxes on these metals.
Texas Governor Greg Abbott signed House Bill 1056 into law on June 29, 2025. This legislation (1) recognizes gold and silver as legal tender within the state, (2) allows Texans to use gold and silver for transactions through systems connected to the Texas Bullion Depository, and (3) authorizes the state comptroller to establish or approve electronic systems for such transactions. The law is expected to take effect in May 2027.
We’ve previously written about Florida when Governor Ron DeSantis signed HB999 into law on May 28, 2025. This legislation (1) recognizes gold and silver coins meeting specific purity standards as legal tender, (2) exempts qualifying gold and silver coins from state sales tax, and (3) mandates that coins used as legal tender be stamped with their weight, purity, and mint of origin. The law is set to take effect on July 1, 2026, pending the establishment of implementing rules by November 1, 2025.
These legislative changes in Florida and Texas reflect a growing trend among states to diversify monetary systems and offer alternatives to traditional fiat currency. For investors, this could signal increased acceptance and utility of precious metals in everyday transactions.
“Tier 1” Confusion: Lately, online articles and social posts have claimed that gold will officially become a Tier 1 “High-Quality Liquid Asset” (HQLA) under Basel III rules starting July 1, 2025 — but that’s not true. While the London Bullion Market Association (LBMA) and World Gold Council continue advocating for gold’s inclusion as an HQLA, no regulatory upgrade is happening on that date.
The confusion comes from a misinterpretation of banking terms. “Tier 1 Capital” relates to a bank’s equity strength, while “HQLA” concerns liquidity requirements — and gold is treated very differently under each. In fact, gold already receives a 0% risk weight when held in a bank’s vault, but it is not approved for inclusion in the Liquidity Coverage Ratio (LCR) under current Basel III rules.
So what’s happening July 1? It’s simply the date by which the European Union finalizes its Basel III implementation — with no change to gold’s liquidity classification.
BRICS Bets on Local Currencies: As the BRICS nations meet in Rio this weekend (July 6–7), the group is taking steps that could reshape global finance. Two top agenda items could have a global financial impact: (1) a new BRICS Multilateral Guarantee (BMG) Fund to attract private capital into member economies by reducing investment risk and (2) an expanded push for trade in local currencies, part of the bloc’s broader strategy to reduce reliance on the U.S. dollar.
While the idea of a shared BRICS currency remains in the early stages, the direction is clear: a shift toward a more decentralized, multipolar financial system — and less dependence on Western-controlled monetary tools.
Past performance is not indicative of future results.
For the latest spot pricing and performance charts, click here.
Vaults, Votes, and Volks: Germany and Italy—the world’s second- and third-largest holders of gold reserves—are under growing domestic pressure to repatriate over $245 billion worth of gold stored in New York’s Federal Reserve vaults. Germany has about 1,200 tons held there; Italy, nearly 1,177 tons, or 48% of its total reserves.
Calls for action are being led by mainstream political parties and citizen-led groups. The shift comes amid a broader trend. The World Gold Council’s 2025 report shows that 43% of central banks plan to increase gold holdings, while only 7% are willing to store it abroad, down sharply from past years. Domestic storage has risen to 59%, up from 41% in 2024.
As concern over sovereignty and economic resilience grows, so too does Europe’s resolve. What was once a quiet logistical decision is now a full-blown geopolitical statement—and the message is clear: bring the gold home.
Sound Money Rising: Florida and Texas are leading a resurgence in "sound money" principles, enacting laws that recognize gold and silver as legal tender and eliminate sales taxes on these metals.
Texas Governor Greg Abbott signed House Bill 1056 into law on June 29, 2025. This legislation (1) recognizes gold and silver as legal tender within the state, (2) allows Texans to use gold and silver for transactions through systems connected to the Texas Bullion Depository, and (3) authorizes the state comptroller to establish or approve electronic systems for such transactions. The law is expected to take effect in May 2027.
We’ve previously written about Florida when Governor Ron DeSantis signed HB999 into law on May 28, 2025. This legislation (1) recognizes gold and silver coins meeting specific purity standards as legal tender, (2) exempts qualifying gold and silver coins from state sales tax, and (3) mandates that coins used as legal tender be stamped with their weight, purity, and mint of origin. The law is set to take effect on July 1, 2026, pending the establishment of implementing rules by November 1, 2025.
These legislative changes in Florida and Texas reflect a growing trend among states to diversify monetary systems and offer alternatives to traditional fiat currency. For investors, this could signal increased acceptance and utility of precious metals in everyday transactions.
“Tier 1” Confusion: Lately, online articles and social posts have claimed that gold will officially become a Tier 1 “High-Quality Liquid Asset” (HQLA) under Basel III rules starting July 1, 2025 — but that’s not true. While the London Bullion Market Association (LBMA) and World Gold Council continue advocating for gold’s inclusion as an HQLA, no regulatory upgrade is happening on that date.
The confusion comes from a misinterpretation of banking terms. “Tier 1 Capital” relates to a bank’s equity strength, while “HQLA” concerns liquidity requirements — and gold is treated very differently under each. In fact, gold already receives a 0% risk weight when held in a bank’s vault, but it is not approved for inclusion in the Liquidity Coverage Ratio (LCR) under current Basel III rules.
So what’s happening July 1? It’s simply the date by which the European Union finalizes its Basel III implementation — with no change to gold’s liquidity classification.
BRICS Bets on Local Currencies: As the BRICS nations meet in Rio this weekend (July 6–7), the group is taking steps that could reshape global finance. Two top agenda items could have a global financial impact: (1) a new BRICS Multilateral Guarantee (BMG) Fund to attract private capital into member economies by reducing investment risk and (2) an expanded push for trade in local currencies, part of the bloc’s broader strategy to reduce reliance on the U.S. dollar.
While the idea of a shared BRICS currency remains in the early stages, the direction is clear: a shift toward a more decentralized, multipolar financial system — and less dependence on Western-controlled monetary tools.
Past performance is not indicative of future results.
