RE: Gold falls today21 Jul 2022 14:25
Take a look at the price of Gold just before the 2007 financial crisis started, its following exactly the same pattern. You should also be mindful that the US have been shorting everything that is tied to the USD with the exception of the Russian Rouble which just so happens to be the best performing currency since the 'invasion' back in late February. And also the Rouble is now backed by Gold and Russia has dumped all its US treasuries !
Russia, China and Switzerland are the biggest holders of Gold Bullion and remember a few years back when Switzerland had its currency pegged to the Euro and was so disenchanted with the performance of the Euro (the ECB made the EURO weak to increase exports !) during this time, it abandoned the whole thing and went it alone and the Swiss Franc went from strength to strength !
JPM (quelle surprise !!!) have the largest short position of Gold paper, so will do their best to get the price as low as they can so they can close this position as cheaply as possible.. Good for those whom are looking to buy Gold Bullion (physical).
The FED will throw as much FREE Dollars at this whilst attempting to pick up Bullion at the same time courtesy of JPM. Remember the FED can print and print and print as many Dollars as it likes, its called endless QE !!!
We've all experienced the antics of JPM here, so it really should come as any surprise as to what skulduggery they are playing in the Gold futures market.
It should also be worth remembering that in August of 1971, President Nixon took the US Dollar off the Gold standard (ie we can now do what we like with the US Dollar without anyone interfering) and look where the Dollar is today, US banks shorting every world currency that is backed by the US dollar and plunging the respective countries into absolute chaos, Sri Lank being the latest to fall !!
You would have thought from the outside looking in that the USA had a strong and vibrant economy, look again, the latest round of stimulus some $17bn was printed to send directly into households accounts, brilliant !!! Why do you need to go to work ????
The only way the US can stop the Dollar collapsing due to this endless printing in the months and years ahead is................to back it with GOLD !!!!!!!
And this could happen sooner rather than later, especially as China have now reduced their US treasuries holdings by around 10% in the last year or so and are looking to partner with Russia, Switzerland and India in developing a new currency backed with Gold and Bitcoin !!!
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