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Gold: The only clock that doesn’t lie

The base Metal of trust

Markets live and die on illusions of abundance. Central banks can conjure money with keystrokes, miners can flood the world with copper if demand and price are right, shale rigs can be spun up almost overnight. But gold is the one market clock that refuses to speed up. It ticks at its own glacial pace: 1.7% annual growth, century after century, empire after empire. No policy, no discovery, no “quantitative easing of geology” can bend that hand forward.

That is why gold, more than any other metal, has been humanity’s base layer of trust. It is not its scarcity that crowns it king—platinum and palladium are far rarer—but its hardness. Hardness is not about how difficult it is to scratch with a knife; it’s about how impossible it is to debase. Every ounce ever mined still exists. Every ring, every coin, every central bank bar can be melted, re-stamped, and re-hoarded. Gold does not vanish into industrial furnaces or chemical reactions. Unlike copper or oil, it is not consumed by the world—it merely changes form, never dying.

Copper offers the perfect contrast. Each year, miners produce 21.9 million tonnes—fifteen times larger than the available stockpile. Copper is used, burned up, buried in wires and circuits. Its price is forever hostage to factory cycles and construction booms. That is why copper can never be money. It is too entangled in the noise of the real economy.

Platinum and palladium tempt with rarity, but they too fail the hardness test. Their annual supply growth is obscene—178% for platinum, 83% for palladium—because their stockpiles are so small relative to production, and industrial demand consumes them quickly. They are exotic industrial ingredients, not neutral monetary anchors. Scarcity alone cannot grant them trust.

Gold, by contrast, is the monetary metronome. Its stockpile is enormous, its supply trickle is microscopic, and its industrial pull is negligible. That creates a structural resistance to debasement unmatched by any other commodity. The gold supply is immune to sudden floods, panicked accelerations, or politically driven production surges. That neutrality is why civilizations keep returning to it—Romans, Chinese dynasties, British empire, Bretton Woods, and now once again in an age where fiat currencies are stretched thinner than rice paper.

We are approaching another reset. Global debt curves look more like terminal charts than sustainable slopes. Fiat money, when debased, relies on faith in institutions, and faith is the first casualty of political expediency. Central banks can tell stories, politicians can spin narratives, but gold requires no script. Its slow heartbeat is the only part of the financial system that cannot be doctored or Photoshopped.

So the question is not whether gold will re-emerge as the hard anchor in the next monetary storm—it always does. The only real question is whether you are already on board before the clock tolls midnight.

Author

Stephen Innes

Stephen Innes

SPI Asset Management

With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.

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