By Ben McGregor
Educational content only, not investment advice. Mining stocks are high risk.
In an interview published October 23, 2026 on the Gold Telegraph YouTube channel, long-time investor and author Doug Casey told host Alex Deluce that central banks are selling dollars for gold. Spot gold closed near $3,995.81 per troy ounce on Friday, October 23, 2026, according to GoldPrice.com. Casey argued that the dollar has become the unsecured liability of a bankrupt government and that the world will return to gold, with the open question being the price at which that happens.
Alex Deluce, founder of Gold Telegraph, interviewed Doug Casey, author of Crisis Investing and founder of Casey Research, in an episode released October 23, 2026. Casey stated: “The dollar is just the unsecured liability of a manifestedly bankrupt government. This is why you see central banks everywhere selling dollars for gold. The world is going to go back to gold. And the only question is at what price.” He linked the buying to the fact that other currencies such as the Chinese yuan, British pound, and euro are also paper currencies. Central banks want a monetary instrument that is not a claim on a government, he said, and that means gold. Casey noted that retail investors have not driven the recent gains. Instead, official buyers have been the main source of demand as they reduce dollar holdings.
Casey also pointed to the 2022 immobilization of roughly $300 billion in Russian central bank assets as a practical example of the risk. He said the Russian holdings of dollar assets left them exposed because those assets trade through New York. Other central banks, he argued, do not want to face a similar situation and are therefore reducing dollar exposure in favor of gold.
Casey recalled the night President Richard Nixon closed the gold window on August 15, 1971. He was driving and heard the speech, and he described it as a disaster. Before that date the dollar was redeemable in gold at a fixed rate of $35 per ounce. After the window closed, the dollar became a fiat currency with no fixed link to gold. Casey said governments prefer the ability to print money because it is less visible than raising taxes or borrowing. He argued that this approach creates artificial economic activity in the short term but leads to larger problems later. He does not expect a return to a gold standard under current political conditions, but he does expect continued official-sector accumulation of physical gold as confidence in paper currencies erodes.
Casey described the U.S. federal debt as having passed the point where repayment is mathematically possible. He cited a figure above $40 trillion. He said the government has three main ways to raise money: taxes, borrowing, and printing currency. Printing has become the preferred method because it is less obvious to the public and can stimulate activity in the short run. He noted that many households also carry high levels of student debt, credit-card debt, and mortgage debt. If investors begin demanding higher yields on government bonds, the cost of servicing the debt rises. Casey said one possible outcome is gradual inflation that reduces the real value of the debt. Another is an outright default. He described both as painful, but he said a default would at least be more honest than continuous inflation of the currency.
When asked what he is doing with his own capital, Casey said he focuses on areas he knows, which are energy and mining stocks. He gave historical context for why he views them as inexpensive relative to the broader market. In 1980 energy stocks represented about 20 percent of the S&P 500. Today they are about 4 percent. Mining companies were about 10 percent of the index in 1980 and are now about 1 or 2 percent. He said these companies produce the raw materials of civilization. Without energy and metals such as copper, steel, and aluminum, modern infrastructure cannot be built. He also noted that gold itself is money. Casey said the public remains largely uninterested in the sector, which keeps valuations low. He added that when resource stocks move, they can rise sharply, with some names advancing 10-to-1 or more over a few years in past cycles.
Casey emphasized that commodity prices are unpredictable, which is one reason many large investors avoid the sector. He still views the combination of low relative weighting in major indexes and ongoing official demand for gold as supportive for the group. He also recommended international diversification of assets because political risk has become larger than ordinary financial risk for many investors.
Casey presented a view in which official-sector demand for gold continues because central banks see the dollar as carrying increasing risk. The metal’s price closed near $3,995.81 per troy ounce on Friday, October 23, 2026. That level is far above the $35 fixed rate that existed before 1971, but Casey said gold is no longer the one-way street it was in the early 1970s. He sees reasons for both higher and lower prices in the near term. For mining and energy companies, the relevant factors he highlighted are the low current weighting of the sector in major equity indexes and the long-term need for the commodities those companies produce. Investors who follow official gold purchases and the relative valuation of resource stocks can track whether the conditions Casey described remain in place.
The Federal Reserve meets on October 27-28, 2026. Any change in the path of interest rates will affect real yields, which have recently pressured gold. The next World Gold Council report on central-bank gold buying will show whether official purchases continued in September and October 2026. Quarterly results from major gold and base-metal producers will show how margins respond if the gold price stays near current levels. Any further public statements from central banks about reducing dollar holdings or changing gold storage locations would provide additional information on the trend Casey described.
Alex Deluce, founder of Gold Telegraph, interviewed Doug Casey on October 23, 2026. Casey is a long-time investor, author of Crisis Investing, and founder of Casey Research.
Casey said central banks are selling dollars for gold because the dollar is the unsecured liability of a bankrupt government. He added that the world is going to go back to gold and the only question is at what price.
Casey said he is focused on energy and mining stocks. He noted that energy companies made up about 20 percent of the S&P 500 in 1980 and about 4 percent today, while mining companies fell from about 10 percent to 1 or 2 percent.
Author
Ben McGregor authors the Weekly Roundup at CanadianMiningReport.com, providing sharp analysis of the metals and mining sector. With a talent for spotting trends, Ben distills complex market shifts into clear, engaging insights on TSXV junior miners. His weekly updates cover gold, copper, uranium, and more, blending data-driven perspectives with a knack for identifying opportunities. A vital resource for investors, Ben’s work navigates the dynamic junior mining landscape with precision.