Thursday, February 25, 2016

Stay Calm ...

Don't get too excited by these little $50 weekly changes in the "price" of gold, just because the NYSE and EURONEXT both "broke" today. After all, "gold" is still trading as a speculative profit vehicle based on (paper) "price" volatility.

This market will become far more volatile yet. The big move comes when gold stops being traded as a "dollar-loss-hedge" or "dollar-profit-trade" and starts being valued as a "systemic-reset-reserve". That is when it completely stops "trading" at all ... in today's sense of the word.

If the FED / BIS cannot manage interbank confidence expectations, that paradigm shift will take place even sooner than 2017 (as hoped, under the new American President).

Yes my friends, our derivative world is so fragile, we do not even move on confidence alone, but on a derivative of confidence, a.k.a. "confidence expectations".

Do stay calm as the families watch (and do nothing but wait). Time proves all.

2 comments:

  1. This coming paragigm shift,and it's associated social phenomena, will be the biggest event in human history.

    ReplyDelete
  2. Indeed, just one such divergence appearing here:
    http://www.zerohedge.com/news/2016-02-29/someone-very-wrong-us-dollar-hedge-funds-most-bullish-one-year-real-money-most-beari

    ReplyDelete