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A Chinese guy, Eric something, was on Luongo's podcast, talking about the Chinese love of gold - and their psychology. Among other traits, he says the Chinese buy to hold. They don't think of it as investment; they think of it as money in the sock.The USD Index is actually strengthening which means momentum is very strong. I am waiting for a pullback, but who knows where it will happen.
It needed to pull back a bit just look at the chart. Spot prices will not go straight up all the time. The question is do you buy on a $40 drop like today or look for sub-$2700 spot gold?
I am buying ETFs to move cash out of bonds. I think if Trump wins the Dow is going to 50k, but I do not know how PMs will react? I suppose silver and platinum spot prices will increase at a faster velocity because of their industrial demand component which fits the current narrative of silver passing gold performance.
Yes, totally agree Bug. Just that this was a straight $100 move in a single day and possibly the first I can recall in 12 years of watching.Mr. Slammy's gonna do what he do. Nothing goes straight up. Won't make any difference in the long run.
At long last complaints of gold price manipulation and suppression got some respect this week from the Official Monetary and Financial Institutions Forum, a snooty group based in London.
The group published a long paper heralding gold's restoration to the center of the world financial system, "Gold and the New World Disorder," and the paper's chapter titled "Market Disruption -- The Short Squeeze" has this to say:...With record demand for gold, much of it from BRICs-related countries, the risks of a squeeze are increasing. This could have several catalysts.
'Bullion banks' holding concentrated gold short positions might need to buy back the metal during another price run.
Analysts have long argued that these short positions suggest market manipulation, citing the disproportionate control held by a few entities.
Lawsuits against banks for manipulating the precious metals markets have yielded some success in recent years. During these lawsuits, some former 'bullion bank' traders have commented about how these gold market strategies might make the market vulnerable to a short squeeze -- either by accident or design.
Academic and other studies provide evidence that 'shorting gold' has historically been used to suppress the gold price, often linked to central bank sales and futures contracts on commodity exchanges.
There is also room for market disruption from imbalances stemming from allocated and unallocated gold accounts, when market participants own just a claim on gold rather than specific bars. Recent analysis suggests that the unallocated-to-allocated gold ratio at the London Bullion Market Association could range from 20:1 to even 100:1. For every ounce of physical gold backing these accounts, there might be 20 to 100 ounces of unallocated paper gold claims.
This indicates a fractional-reserve system where future claims may far exceed the physical gold available. Predicting the timing of such a squeeze is speculative, given the size of some of these positions and growing world financial and economic tensions. However, with suspicions rising that some BRICs countries could be considering 'weaponizing' gold against the West, financial markets could be in for a bumpy ride."
Interesting that it's suddenly running up, just as optimism emerges, with the end of the Cipher regime.Sign of melt up as folk run scared of fiats generally and dive into ‘the prettiest horse in the glue factory’ ?
And yes another all time high for me as the world sees how fucked up the uk is![]()
All true.I thought we might see gold testing the ATH again this week, but several forces are conspiring against it:
- Japan raised rates Friday which is pressuring the carry trade
- China's DeepSeek AI story is spooking the stock market
- The effects of Trump's tariffs (and potential tariffs) on commodity markets aren't well understood yet
Especially when the yield on the ten year was in the 13-15+% range in those years.Gold hit over $750 about 1979, and then fell down to $250 - where it stayed for a decade. Why? Because it bears no interest, offers no returns.
yep....i remember Volker well.......bought my first house in 80-81 ...home interest rates were over 12%....think they peaked at 15% ....i agree people today couldn't survive that environment......Coming out of Jimmy Carter to Regan seems very much like Biden to Trump .....the first few years out of Carter were pretty toughPaul Volcker brought inflation under control but I doubt we could survive that again...
....i agree people today couldn't survive that environment......
...
Fiscal doom loop on aisle 7.
Soaring debt levels threaten to render the Federal Reserve powerless, taking away its ability to fight inflation, warned Tavi Costa, macro strategist at Crescat Capital.
In a recent interview with Jeremy Szafron, Anchor at Kitco News, Costa highlighted the increasing irrelevance of traditional monetary tools like interest rate adjustments in the face of unprecedented fiscal challenges.
Costa remarked on the alarming trajectory of the U.S. national debt, which, according to the U.S. Treasury, recently exceeded $34.5 trillion, emphasizing the...
To be fair, Carter inherited the Nixon-Ford mess, I remember WIN, "Whip Inflation Now" well.yep....i remember Volker well.......bought my first house in 80-81 ...home interest rates were over 12%....think they peaked at 15% ....i agree people today couldn't survive that environment......Coming out of Jimmy Carter to Regan seems very much like Biden to Trump .....the first few years out of Carter were pretty tough
Only one thing will control inflation: Ceasing to expand the money supply.Paul Volcker brought inflation under control but I doubt we could survive that again...
And Nixon arbitrarily ash-canned the tie to gold, because he wanted his Splendid-Little-War, more than he wanted sound money. At least, he didn't want Peace-With-Honor (his campaign phrase) before he bombed the snot out of the Cambodians. And that took more money-printing than could be sustained with a supposed tie to the Fort Knox stash.To be fair, Carter inherited the Nixon-Ford mess, I remember WIN, "Whip Inflation Now" well.
Big government senders need an intervention.Only one thing will control inflation: Ceasing to expand the money supply.
The reason it does not cease, is GOVERNMENT SPENDING. To buy votes.
The New (raw) Deal brought this about, and there will unfortunately be no way to terminate it directly. Moral rot has not only set in, but is institutionalized.
That leaves only a currency collapse. And THAT will probably erupt into a societal collapse - a Red Revolution, and a period of darkness. A hundred years or a thousand, I don't know.
Powell cannot do what Volcker did. Volcker screwed interest rates up as a brake on CONSUMER spending - back when government spending was a fraction of what it is today. Powell has tried a LITTLE - five-percent is historically LOW - and look at all the blowback he's getting. Cheap money is more addictive than free coke.
We are gonna have to have that collapse. I don't want it; no one sane wants it; but there is no other way to stop this runaway train.
Did you get a button too?To be fair, Carter inherited the Nixon-Ford mess, I remember WIN, "Whip Inflation Now" well.
Problem is, retail banks create much of the dollars via fractional reserve lending. Like 80% of itOnly one thing will control inflation: Ceasing to expand the money supply.
The reason it does not cease, is GOVERNMENT SPENDING. To buy votes.
Which is why we should be seeking to hurry it along, if it's inevitable anyways. Might as well yank that band-aid off while we still have resources left for the other side.We are gonna have to have that collapse. I don't want it; no one sane wants it; but there is no other way to stop this runaway train.
He had no choice. It was either end it then, or wait a few weeks/Months 'til it ran out and have to close the gold window anyways.And Nixon arbitrarily ash-canned the tie to gold, because he wanted his Splendid-Little-War, more than he wanted sound money.
Yep, that's why I always emphasize the use of the Trading with the Enemies Act to "legalize" the theft he perpetrated against the American People.None of this would have happened had not Roosevelt first created, in gaps of the Constitution, activist gimme-gimme government.
yes they inherited issues...ie nixon tried price controls etc...the big move that i remember from the carter years that feels like biden was the huge gas price jumps and embargo....and then the hostage problem.......i was a new driver then....gas went to ~1$ a gal and i found a dish washer job for $1 a hour ......the math just didnt work ......i had to make my money doing farm type work on the side .......To be fair, Carter inherited the Nixon-Ford mess, I remember WIN, "Whip Inflation Now" well.
That marked the start of the *"deficits don't matter", phase.and the first regan years were very tough but he definitely changed the direction and ushered in some "golden" years in his later years and the subsequent clinton years
That's a given.having lived the carter/regan years makes me think we will have to go thru a rough recession before things get better
Chester A. Arthur was.Andrew Jackson, warts and all, was our last financially responsible president.
No. I got a first clue that not everyone in leadership is a leader, or even reasonably smart.Did you get a button too?
Agreed, but government wants to be able to do the CTRL+P financing for all the libburl crackhead schemes. Everything from windmills and farms-to-solar-wastelands, to Depopulation Jabs - and the costly prerequisite, Gain-of-function viruses that were SUPPOSED to be lethal, but Chy-nuh dropped the ball there.Problem is, retail banks create much of the dollars via fractional reserve lending. Like 80% of it