Friday, July 29, 2016

All The Reasons

Though I do not have time to post the links, there is some corroborating evidence that the West is rediscovering physical gold, even if for all the wrong reasons.

The "price" of "gold" will always fluctuate perceptually until the true utility of gold is activated to avert systemic disaster.

When that happens, the actual value of gold will rapidly be recognized, once and for all the right reasons - and no paper price will do.

Then rejoice, as many paper debts will be extinguished ... for those who have followed in the footsteps of Giants.

Happy Friday!

6 comments:

  1. Are you implying the true utility of gold is about to happen. I'm still waiting for the sub $1000/oz for my second all-in. However, the closer we are to the birth of M-SDR in October, I think I may have missed the boat.

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    1. Not at all, the dollar could become stronger than death before it dies. But who will sell real gold for under $1000? I think "there will be a problem with your computer screen".

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    2. I picked up few ounces at $1060 from APMEX in February. I was going to start averaging down from that price point but it didn't work out.

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  2. Hi, Will.

    What do you think of this?

    http://finance.sina.com.cn/roll/2016-08-03/doc-ifxunyya3123993.shtml


    The use of the gold market functions open up "along the way" along the country's physical gold cycle

    "Second, the price of gold to achieve diversification of RMB, is conducive to the formation of RMB gold pricing. Historically, gold pricing largely in Europe and America. Along the country to participate in China's gold market, the yuan will become a new force in the market price of gold, imported from the United States and Europe to break our gold situation, so that diversified sources of physical gold, gold prices RMB diversified pattern is formed on the objective, thus help us grasp yuan gold pricing. In the sharp exchange rate fluctuations irrational, our government can adjust the yuan price of gold, the price of gold to maintain the yuan's stability, the objective of the RMB exchange rate formation support."

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    1. Hey Grumps. Long time ...I have read translations of similar sentiments and they always get "lost in translation" - it mostly underscores the Eastern vs. Western mindset maybe?

      But I think what they are trying to understandis the efeect of Yuan gold price setting on FOREX (impact on XAU). On the Western side, gold "price" in dollars goes hyper through the collapse of paper gold, and on the Eastern side it happens through the validation of Shanghai market over COMEX.

      Which is cause, and which is effect muddles the waters - it is a synchronous correlation.



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  3. Have you seen Avery Goodman's Interview with Lars?

    https://youtu.be/-zYbxgyYn94?list=WL

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