Summary: QE Backstopping of equity mkts by Fed, and now transferred to Japan and Draghi has meant large rotation out of gold (as portfolio diversification declines), additionally major shorting of gold by speculators has caused gold prices to drop but there is a finite bottom. So whilst QE will continue to drag on price, the unwinding of shorts will push prices up. Strategy: wait for possible lower price, and buy, sell when QE ends prices should go way higher, and unless Fed back with QE again
Very interesting post's ! Wall Street and the City of London are absolute crooks! Ordinary people would be locked up if they committed similar crimes and yet our incompetent politicians continue to condone a crooked system!
That's why gold has gone from 1130 to 1200 in the past week! Though, it looks like a 'no' vote and I would suspect we could see those lower gold levels again after the vote on 30th. IMO Centamin is unlikely to move too far out of range without CC news and that won't come until early next year, so there may be more opportunity to pick up more in the mid 40's for those looking. But don't count on it!!!
In essence central banks usually come to a consensus on a reserve currency (currently US dollar and Euro). Being a reserve currency has several advantages: it keeps interest rates lower, prices lower and there is no need for exchange rates adding upto 3% to the bottom line when trading. More importantly it confers the ability to extend hegemony over delinquent behaviour by individuals, and banks or countries (Swiss banking secrecy for example, or sanctions against Russia). There are disadvantages "large and persistent trade deficit, exporting millions of good jobs overseas… creation of asset bubbles, and a marked budget deficit, high unemployment.” (Jared Bernstein). A reserve currency needs to maintain liquidity in order to make it easy to trade/buy/sell and be stable to maintain a steady price band. Russia, China, Iran, and Venezuela are against US hegemony and are voicing the need for an alternative. In particular China is against indebted Paper Fiat reserve currencies. How we arrive at that alternative is probably the reason, imo, for the drive to increase gold on central banks' balance sheet, which should be positive for us Cey owners, and of course I could be wrong.
are not to be trusted, usually there is an ulterior motive behind their opinion and in any case their ancestors were actually robber barons who exploited their tenants and workers during the American recession! They were also involved in running illegal booze during prohibition and bribing officials!
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