Gold and Bible Prophecy

Gold was once a stable backing for many world currencies. A little more than 50 years ago, the U.S. dollar itself was backed by gold and was fixed at a value of about $35 per troy ounce. In 1971, currency inflation, economic competitiveness, and other factors moved then-President Richard Nixon to decouple the U.S. dollar from gold, making the dollar a pure fiat currency. Today, one ounce of gold costs roughly $2,700, and gold is currently at or near its highest value ever in relation to most world currencies.

The American dollar has been the world’s reserve currency for 80 years, but calls to dethrone the dollar are growing (U.S. News & World Report, November 7, 2024). China has been buying massive amounts of gold in recent years, likely toward that objective. In 2022, the U.S-led Western nations froze the assets of Russia to punish the nation economically after its invasion of Ukraine. This prompted China to dive into a gold-buying spree and reduce its massive holdings of U.S. Treasury notes. It has been estimated that China’s central bank has purchased 1,000 metric tons of gold since then and, according to one analyst, may now hold 5,000 metric tons (SeekingAlpha.com, December 25, 2024). One metric ton is 1,000 kg—slightly over 2,200 pounds. If such speculations are right, at gold’s current value of over $85,000 dollars per kilogram, China’s stockpile could currently be worth over $400B. China’s ultimate goal, and how much more they intend to buy, is unknown.

Bible prophecy makes an interesting comment about gold and people or nations that put their trust in physical wealth. Just prior to the return of Jesus Christ, people will throw their silver and gold in the streets (Ezekiel 7:19) because it will not protect them from the coming judgment. To learn more about what is really important in life, read or listen to “If I Were a Rich Man….”