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Gold’s role in a new world monetary order

By: Ken Hoffman Commodity Strategist, Red Cloud Securities

Gold has had a spectacular run these past two years surpassing $4,000 an ounce. The question now remains; what happens to the price of gold going forward. Common stories seen say “the price of gold is too high”, “Gold has moved 100%, it must fall a lot from here”, “Gold must be in a bubble”. We disagree, while the price of gold may be volatile, and pullbacks can and likely will occur, the overall gold market has shifted to a new, yet old as time, role. That of a stable source of value that backs the global monetary order.

We believe that there is a new world monetary order being set up and being the primary beneficiary the main drivers behind gold’s, bull market, and we believe the continuation of a gold bull market will be as follows:

  1. The US is shrinking from global trade, their endless trade antics have the world less desired dollars for trade and needing alternatives for their capital, so they are selling the US dollar and buying gold. Gold now represents the second largest holding at Central Banks only behind the US dollar and we expect this number to increase particularly in countries such as China.
  2. Gold represents a stabilizing force in the world. It is not a cryptocurrency, which is not fully understood nor accepted by Central Banks, and it is something that the world all agrees upon as a stabilizing, force and effort more chaotic monetary system.
  3. Longer-term we think the price of gold can hit $10,000 a timeframe and that is very difficult, but we believe sometime before This would be in-line with prior gold bull markets. From 1972-1980, gold rose by 1,800%, from 2000 to 2008, it rose by more than 425%. The current 113% rise would not even register as a major historical move in gold. A 500% move would be near the 2000-2008 move. Using this as a gauge, gold has the opportunity to hit this level of approximately $10,000.

We will continue to monitor the price of gold as there could be short-term spikes that may make gold get a bit ahead of itself however, the long-term directory of gold is undeniable gold will continue to have a more important role in financial centers as it has in the past and particularly as the United States slips from global relevance, trading wise gold is stepping into that vacuum in a very large manner. We are watching the movement of the DXY, US Dollar index, which we believe could fall by 30%-40% over the next few years as the dollar is devalued and hits levels last seen 15 years ago. Watch for more gold-backed currencies and official gold backed notes as countries move away from a global dollar-based system.

The year 2026 and beyond is expected to show a continued de-dollarization and dollar devaluation trends, we believe this global monetary change will continue to be beneficial for the price of gold. We advise clients to not only own physical gold, but will have more leverage is junior gold companies, whose gold in the ground is trading at very small fractions to that above ground, and historically outperform physical gold by a wide margin, as has been seen in 2025.

Bruce Tatters, CFA

Chief Executive Officer

Mr. Tatters joined Red Cloud in 2018, bringing more than 24 years of senior capital markets leadership. Mr. Tatters was the co-founder at both Triumph Asset Management as Chief Investment Officer and Westwind Partners as Managing Director, Institutional Equities. Prior to that, Mr. Tatters was Global Co-Head of Institutional Equity Sales at National Bank Financial (successor to First Marathon Securities). At First Marathon Securities, he spent six years as an Institutional Equity Salesperson and two years in equity research. Mr. Tatters began his career in equity research at Burns Fry Ltd. Mr. Tatters holds a CFA designation and a bachelor’s degree in Economics from the University of Western Ontario. 

Michael Mackasey

Chairman

Mr. Mackasey has over 40 years’ experience in the capital markets, having held senior positions at both Canadian and international investment banks, most recently as Vice Chairman at Macquarie Capital Markets Canada. Mike has provided advice to and has managed financings for a great number of corporations, both large and small. Mike has a long history in financing emerging resource companies and is very cognizant of both the challenges and opportunities that they face.

In addition to his role in the capital markets, Mike acted as Chair of the Board of the Canada Development Investment Corporation (CDEV) a federal Crown Corporation charged with managing the commercial assets of the Government of Canada

Mike has a B.Comm from McGill University and an MBA from the Ivey School of Business. He also holds a Diploma from the Institute of Corporate Directors (ICD.D).

Bob Sellars

Senior Vice President and Chief Financial Officer

Robert (Bob) Sellars joined Red Cloud in June 2021, bringing more than 40 years of experience in capital markets and financial services to the table, including his significant roles on investment industry committees within IIROC . For 21 years Mr. Sellars served as Chief Financial Officer & Executive Vice President for Dundee Corp. and Dundee Securities and is known for his tenure as First Marathon’s CFO for over a decade; among other C-Suite roles in the sector during his career. Mr. Sellars is a Chartered Professional Accountant (CPA), Chartered Accountant (CA), Chartered Financial Analyst (CFA) and received an MBA from the University of Windsor.