The most undervalued asset on the planet? Been hearing this for many many years yet when the price spikes it comes right back down. How many were buying at 40 and 50 an ounce? The price is whatever the market says it is.
In general, all of the metals gurus who are really self proclaimed experts, have never said anything other than what's being said in the video above. I never ponce heard any of them say that the market is going lower and we will be in a bear market for years. So in general, they all lose credibility and are really nothing more than cheerleaders for the NY jets or something.
China and Russia have 80 tons of gold? I'd like to see some proof of that. That would be 10 times the stated amount for Russia and 30 times the stated amount for China.
https://www.madisontrust.com/inform...ons/which-world-countries-have-the-most-gold/
I don't trust any data coming out of China so if anything I would say they overstated their numbers. For a moment though lets say the numbers they are throwing around are real. Instead of the 4 or 5000 tons they announce they really have 80,000 tons. Hows does that translate into a higher market when you dump 75,000 tons of the metal onto the market? If anything, hiding those "real" numbers already artificially inflates the price. If they came out tomorrow with those numbers you would see gold plummet to 200 an ounce. So yea, go ahead and make the announcement that you are going to back your brics currency with 80 tons of gold. Once the price of gold plummets and the rest of the world gets on board then the real challenge starts. Everyone ramps up production to get their piece of the gold. Does the gold backed currency then start getting cashed in for the real metal? I suspect it won't because no one would ever give up control of that much gold. A backing of a currency by anything only works if you can actually turn in the currency for the real metal. If you can't then the currency is really backed by nothing, same as the dollar.
Let's look at what all that gold works out to per person. In the US the 8k tons works out to less than an ounce per person just in the US. IIRC it's like 3/4 of an ounce per person. If china and Russia had 80,000 tons that would be enough for 1 ounce of gold for about 3-4 billion people. Thats just rough calculations. But the world has 7-8 billion people on it. So that's roughly a 1/2 ounce per person. However the reality is that a very small portion of people on the planet have any wealth compared to the top 1-3%. So, 80-90% of that gold would end up in the hands of about the top 3% so what's left for the 97%? If you are on a gold standard then no reason to have a currency, just trade in gold. If a currency is backed by gold then it's the same as gold right? So now your saying there is a fixed amount of gold in the world. No monetary expansion other than what will be mined in the future which on a worldwide basis is very little. No more fractional reserve banking. So, no lending unless a bank has real reserves. Eventually that fails. If someone borrows 10 ounces of gold from the bank and over 30 years the bank demands 30 ounces of gold in repayment, where does that "Interest" on the gold come from?
As for the dollar replacement. Like it or not, there is no replacement currently. Maybe in 8-10 years but for now the dollar is the only game in town unless everyone wants to trade in local currency. Whats the real purpose of currency though? Just an easy way to facilitate trade. I can trade my chicken for 10 tomatoes and then trade 2 of my tomatoes for a little wheat or I can sell my chicken for some currency and go buy whatever I want. It really was used to replace bartering. Bartering is the ultimate form of of economic activity. You get right down to basics with no currency needed. You either produce something of value or you don't live very long. There is no welfare, there is no society as we know it. No big government with endless welfare positions within it. No spy agencies. No militaries. No taxation and no society as we have come to know it. It's sorta hard for any government to come in and say I need 20% of your chickens and tomatoes so we can give it to our snow plow drivers this year and pay for the fuel ect. In order to have a society as we know it, you need a fiat currency that people believe in.
Chinas economy is in the shitter. Stock market is down, real estate is valued at like 60 trillion which is probably about 40 or 50 trillion too high and they are going to replace the dollar?