Up up and away

President Trump must be getting used to criticism - it's coming from all directions. The latest attack concerns his acceptance of the gift of a Boeing 747-8 jumbo jet, donated by the Gulf state of Qatar. Kelly Morrison, a US Democrat congresswoman, said this is "corruption in plain sight" and that the US Constitution "forbids it."

But it's much more worrying than that. The reason the 13 year-old Qatar plane is so welcome is that Boeing, a quintessentially US company, has failed to deliver two replacements for Air Force One, the Presidential aircraft, which are 35 years old. Trump critics are missing the point - it's the industry that should be worrying people.

Boeing contracted to build and deliver two new Air Force One planes by 2024. That deadline has been missed. Boeing's fixed-price contract means it has already lost an estimated $2.5 billion and counting.

Boeing was once synonymous with American power, a huge employer and a key cornerstone of the American economy. Its aircraft were the pride of America. Two deadly crashes (in 2018 and 2019) involving the Boeing 737 MAX family of planes and many of its planes grounded through regulatory concerns over safety seriously damaged that pride.

Chinese jubilation

Refurbishing the Qatari 747 - installing various security systems might take three years and cost more than $1 billion; the plane is currently worth about $400 million. And the refurbishment might well have to be done by Boeing, the original manufacturer. It might have to take its place in a long line - President Trump has just announced that Qatar has agreed to buy as many as 210 planes from Boeing in a deal worth $96 billion.

Inevitably China has relished Boeing's difficulties. The English language edition of Global Times, a newspaper controlled by the Chinese Communist Party (CCP) published an article in March last year headlined 'Boeing an epitome of US hegemony, with nuts and bolts falling all over the ground." Boeing, it says, is a "microcosm of today's US."

Challenging the Dollar

China is intent on seeing US global hegemony ended, not just in aircraft production but in fiat currency terms too. The weakening of the Dollar sets the blood racing in Beijing. Not that China's fiat currency can replace the Dollar as a global reserve; its capital controls make the Yuan unfit as a global reserve asset. But just as Boeing was once a symbol of American power, the Dollar was once a symbol of the country's settled financial supremacy. No longer.

Gold rising

Boeing was once a byword for safety. It is no longer. The Dollar was a byword for financial strength. It is no longer. But while there are alternative aircraft manufacturers, there is no obvious fiat currency that is ready to become the global reserve asset. And yet the need for a globally useful reserve asset has not diminished, even though the importance of the Dollar as a global reserve has been fast shrinking.

Gold is stepping into the reserve gap. The World Gold Council (WGC) considers that central banks now account for some 20% of gold demand, almost double the average between 2011 and 2021. The Dollar price of gold has risen by about 30% so far in 2025, while the S&P 500 has barely risen at all.

Gold is attracting central banks and big investors because the world is demonstrably a more uncertain place than since World War Two. Today China sneers at America's plane producer. It also holds in contempt the US Dollar. But its administration and private citizens are buying gold like it's going out of fashion. Why? Because they know that fiat money can be and is being steadily undermined. Inflation in the US and the UK appears to be slowly coming under control. But our central banks are aiming to have annual inflation running at 2%, meaning that the paper money in your pocket is losing 2% of its purchasing power every year. So if you are happy with a loss of some 20% of purchasing power over a decade, then hang onto your Dollar and Pounds. If you aren't happy with that prospect then buy gold. And buy it through Glint and know that it is safely stored in a Zurich vault.

For UK clients: At Glint, we make every effort to demonstrate a balanced conversation between gold, silver, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.

For US clients: Graphic representations of value are for illustrative purposes only. The Glint debt card is issued by Sutton Bank, member FDIC. The sale, purchase and storage of precious metals are offered by Glint and not Sutton Bank. Your investment in precious metals through Glint is

·        Not insured by the FDIC.

·        Not a deposit or other obligation of, or guaranteed by, Sutton Bank.

·        Subject to investment risks, including the possible risk of loss of the principal amount invested.

All investments involve risk, including possible loss of principal. The value of precious metals is affected by many economic factors, including but not limited to the current market price, demand, perceived scarcity, and quality of the precious metal. Precious metals can increase or decrease in value. Past performance is not a guarantee of future results. As such, investing in precious metals may not be suitable for everyone.