A trillion$ here, a trillion there....4 Apr 2020 00:13
I see the IMF has $1trillion at the ready and the chief of the IMF made several points of great interest to gold recently (my bet is that this will not be enough) [You do have to spare a thought for the World Bank and the IMF - what sort of fundamentally unstable and flawed financial system have you delivered to the world when we pay you trillions to "construct"?]
From the IMF chief
>The coronavirus pandemic has created an economic crisis “like no other,” the top International Monetary Fund official said.
>“Never in the history of the IMF have we witnessed the world economy come to a standstill,” said Kristalina Georgieva, managing director of the IMF.
>“It is way worse than the global financial crisis” of 2008-09, Georgieva said during a World Health Organization news conference.
Good grief, if the panic from the virus is not enough, lets double down [no wonder the US has decalred gun shops an essential business?!]
Be well worth reviewing the behaviour of gold during and after the GFC for a clue to behaviour in the ensuing months and years. Didnt fair too bad? Good grounds to think if the problems are worse, then the perfomance of gold will be better? Dont worry about the theory, whats the big end of town doing with their feet ...?
"At the World Gold Council (2018), we believe there are five reasons why central banks are showing an increased interest in gold:
FX reserves are growing.
Gold is re-emerging as a strategically important asset and countries are seeking political independence from the US via dedollarisation.
The US dollar is strong now, but asset valuations, current levels and budget deficits are undermining its attraction.
Higher global risks and the diminished/deteriorating quality of other reserve assets, such as sterling and the euro, are fuelling demand for diversification.
Changes in global trade patterns and the expected future state of the international monetary system, which will see the US dollar become less dominant as China’s financial markets develop and open up."
and if its good enough for the central banks, its good enough for me.
https://schiffgold.com/key-gold-news/central-banks-continue-remarkable-gold-buying-spree/
Very hard to see property prices holding up, and in fact they are on the decline, rents are harder to collect (and beware of the rights of the renter you landlords, please read the LANDLORDS GUIDE TO THE PANDEMIC), EQUITY MARKETS LOOK VERY TROUBLED, with the Dow showing retreat to 2016 levels, causing a lot of probems in retirement funds and programs. The Banks shutting down dividends (even paying each other !!!), already troubled by start-ups, employee lay-offs, not to mention a lot of ban staff (now overworked) find themselves in the position of having to be social workers (no training for tis!) to couples who cannot cope...and on it goes.
and on gold goes
havagoodweekend all !!!
the gold gnome
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