Thursday, April 16, 2026

♟️I Missed Gold In 1979. I'm Not Missing This.

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The rise of gold overlayed of an American and Iranian Flag.

"The conflict was over. The repricing was not."

Karim Rahemtulla, Co-Founder, Monument Traders Alliance

Karim Rahemtulla

Dear Reader,

In 1979, I watched gold run from $230 to $855.

The Shah fell. The Ayatollahs took over. Fifty-two American diplomats were held for 444 days.

The world flooded into gold. I watched from the outside. Too young to act, old enough to know what I was seeing.

Gold did not collapse when the hostages came home. The conflict was over. The repricing was not.

That is the lesson most traders are missing right now.

Look at what gold actually did this year. It peaked above $5,300 in late January, before the US and Israel launched strikes on Iran in late February.

When the conflict escalated and the Strait of Hormuz closed, gold did not spike higher. It sold off from $5,200 in early March to $4,400 by late March. Inflation fears and rate uncertainty hit harder than the safe-haven bid.

Now peace talks are underway, and gold is climbing back toward $4,850.

Chart: Gold
 

Most traders look at that chart and see noise. I look at it and see something familiar.

The market is not pricing gold on the conflict alone. It is pricing gold on what the conflict has done to the monetary system underneath it.

Central banks bought more than 1,000 tonnes of gold in 2024, the third consecutive year above that level. Even in 2025, when buying cooled, they still purchased 863 tonnes.

In the latest World Gold Council survey, 43% of central banks said they plan to increase their gold holdings over the next year. Not a single one planned to cut.

The dollar's share of global reserves has fallen from 73% in 2000 to 56.77% as of Q4 2025, a 31-year low. Saudi Arabia is settling nearly half its oil sales to China in yuan.

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During the conflict, Iran was reportedly accepting yuan for oil passing through the Strait itself. China, Russia, India, Brazil, and Poland have added hundreds of tonnes each over the past five years.

The shift away from dollar reserves is not a trend. It is a policy.

The deal that kept the dollar dominant for fifty years is coming apart.

The Iran conflict did not cause any of that. It accelerated it.

When a country sitting on massive oil reserves falls into chaos, when the Strait of Hormuz closes, and 20% of the world's daily oil supply stops moving, every central bank and finance ministry on earth is forced to ask the same question: what do we hold that no government can freeze and no sanction can touch?

In 1979, the answer was gold. Forty-six years later, nothing has changed.

JP Morgan is projecting $6,300 gold by year-end 2026. Deutsche Bank has a $6,000 target.

Those forecasts were not built on the conflict. They were built on the structural forces the conflict made impossible to ignore.

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The ceasefire did not change those forces. The recovery in gold back toward $4,750, while peace talks remain unresolved, tells you something. The structural bid does not wait for certainty.

In 1979, gold kept climbing long after the headlines faded. The biggest move came not from the crisis itself but from what it revealed about the system beneath it.

I learned that lesson by watching in 1979. I've made a lot of money in gold stocks since then. And I'm actively pursuing new opportunities.

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