Why the Global Monetary Reset Has Just Begun (Saudi, Yemen & Gold)

Felix Nikolas Prehn•Oct 12, 2026

Summary

Felix discusses the geopolitical and economic implications of a missile strike on Riyadh's King Khaled International Airport. Felix emphasizes that this event is a catalyst for the potential end of the 1974 petrodollar agreement, where Saudi Arabia agreed to price oil in US dollars in exchange for military protection. Felix argues that as Saudi Arabia seeks security pacts with other nations like France, Turkey, and Pakistan, the fundamental support for the US dollar's value is eroding, leading to a possible 'dollar reset' that will impact every investor's portfolio.

Felix highlights several key market shifts resulting from this instability:

BRENT (Oil): Felix notes that oil prices have surged past $100 per barrel following the attacks. Felix argues that this oil shock will directly impact households through higher energy bills and grocery costs before eventually hitting stock portfolio statements. Felix warns that many stocks currently sit in a 'danger zone' and lack the ability to absorb such a significant economic shock.

GOLD: Felix observes a major divergence in the gold market, where individual investors are selling out of fear while central banks and institutional money are aggressively buying. Felix views this as a sign that the 'money printers' are losing trust in paper currency. Felix states that as long as gold maintains its levels, it remains a primary hedge against the declining dollar, and he expects Saudi Arabia to eventually increase its gold reserves officially.

US TREASURIES: Felix points out that Saudi Arabia has recently sold approximately $11 billion in US Treasuries in a single month. Felix suggests this is a significant move indicating that the kingdom is diversifying away from American debt as the decades-old security-for-oil bargain weakens. Felix argues that this 'drift' away from the dollar is a quiet but critical financial reality that investors must prepare for immediately.

Mentioned Stocks

GOLD

Sentiment: BUYAction: RECOMMENDED

Reasoning: Felix states that central banks are buying gold despite recent price drops, which signals a lack of trust in the paper dollar. Felix argues that gold is an essential hedge and suggests that if Saudi Arabia starts officially increasing its gold reserves, it will confirm the shift away from the dollar. Felix notes that institutional money is moving into gold while retail investors panic-sell.

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TLT

Sentiment: SELL

Reasoning: Felix points out that Saudi Arabia sold $11 billion in US Treasuries recently. Felix suggests that the incentive for foreign nations to hold US debt is decreasing as the security-for-dollars bargain (the petrodollar system) begins to fail.

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OIL

Sentiment: BUY

Reasoning: Felix notes that Brent oil has jumped over $100 and predicts that supply disruptions and geopolitical fear will keep prices high. Felix argues that an 'oil shock' is coming that will manifest in higher costs at the pump and in grocery stores, and eventually impact stock portfolios negatively.

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