Based on yesterday's response
in the paper gold market in NYC after the Fed's rate hike announcement, it seems that the western Central Banks / bullion banks are losing control of the bullion market.
He discusses the recent FOMC minutes, the reaction
in paper gold and the ongoing, global demand for physical gold.
In our view, the short interest
in paper gold rests on a credit pyramid that is precarious.
In fact, the pricing mechanisms that rule futures contracts, which in turn, establish real - world asset pricing, can be entirely disconnected from physical supply and demand determinants, especially
in the paper gold and paper silver worlds of London and New York.
Not exact matches
While most of his proposals — «to abandon the
gold standard, let international exchange rates float, use federal surpluses and deficits as macroeconomic policy tools that could counter cyclical trends, and establish bureaus of economic statistics (including a consumer price index)
in order to facilitate this effort» — are now conventional practice, his critique of fractional - reserve banking still «remains outside the bounds of conventional wisdom» although a recent
paper by the IMF reinvigorated his proposals.
While silver, platinum, and palladium are slightly more correlated to stocks due to their role
in the industry (more on that later), they still offer many of the same protections as
gold: namely that they won't evaporate
in an instant the way
paper assets can.
However much of the world wants this plain
paper in their pocket or
in their bank account and as such this cumulative full faith
in the dollar makes it a new»
gold standard» that central banks the world over crave.
To defend itself, the IMF is proposing to act as a «central bank» creating what was called «
paper gold»
in the late 1960s — artificial credit
in the form of Special Drawing Rights (SDRs).
I don't know if Ralph Benko is one of them, but he has written on this subject before and very recently wrote two articles (here and here)
in Forbes, which has traditionally been sympathetic to the
gold cause,
in which he too cites Austin's
paper and adds to the chorus:
There is no whatsoever connection between «
gold bars
in Fort Knox» and the green
papers in your pockets you call money.
In their September 2009
paper entitled «Is
Gold a Safe Haven?
In his January 2012
paper entitled «The Seasonality of
Gold — Jewelery Demand and Investor Behavior», Dirk Baur examines calendar month seasonality of the price of g
Gold — Jewelery Demand and Investor Behavior», Dirk Baur examines calendar month seasonality of the price of
goldgold.
Unlike
in the past, when you could exchange your dollars or any other currency for physical
gold, fiat currency is not backed up by anything else than a number printed on a piece of
paper.
By 1980, however, US rates rapidly rose to 21.5 %
in order to contain virulent inflationary forces unleashed when ties between
paper money and
gold were cut.
In their September 2011
paper entitled «A Comparative Analysis of the Investment Characteristics of Alternative
Gold Assets», Tim Pullen, Karen Benson and Robert Faff examine the diversification, hedging and safe haven properties of gold bullion, ten gold stocks, 11 gold mutual funds and two gold exchange traded funds (ET
Gold Assets», Tim Pullen, Karen Benson and Robert Faff examine the diversification, hedging and safe haven properties of
gold bullion, ten gold stocks, 11 gold mutual funds and two gold exchange traded funds (ET
gold bullion, ten
gold stocks, 11 gold mutual funds and two gold exchange traded funds (ET
gold stocks, 11
gold mutual funds and two gold exchange traded funds (ET
gold mutual funds and two
gold exchange traded funds (ET
gold exchange traded funds (ETFs).
In the October 2012 draft of their
paper entitled «A
Gold Bubble?»
In their September 2010
paper entitled «Hedges and Safe Havens — An Examination of Stocks, Bonds, Oil,
Gold and the Dollar», Cetin Ciner, Constantin Gurdgiev and Brian Lucey investigate pairwise hedging and safe haven relationships among these five major assets / asset classes.
In their February 2017
paper entitled «Bayesian Model Averaging, Ordinary Least Squares and the Price of
Gold», Dirk Baur and Brian Lucey analyze a large set of factors that potentially influence the price of gold via two methods: Ordinary Least Squares (OLS, scatter plot) and Bayesian Model Averaging (BMA, accounting for model uncertain
Gold», Dirk Baur and Brian Lucey analyze a large set of factors that potentially influence the price of
gold via two methods: Ordinary Least Squares (OLS, scatter plot) and Bayesian Model Averaging (BMA, accounting for model uncertain
gold via two methods: Ordinary Least Squares (OLS, scatter plot) and Bayesian Model Averaging (BMA, accounting for model uncertainty).
In their September 2013
paper entitled «What if
Gold is a Bond?»
In their July 2013
paper entitled «
Gold, Oil, and Stocks», Jozef Baruník, Evzen Kocenda and Lukas Vacha analyze the return relationships among stocks (the S&P 500 Index), gold and oil (light crude) over the past 26 ye
Gold, Oil, and Stocks», Jozef Baruník, Evzen Kocenda and Lukas Vacha analyze the return relationships among stocks (the S&P 500 Index),
gold and oil (light crude) over the past 26 ye
gold and oil (light crude) over the past 26 years.
Such a hypothesis,
in our opinion, does much to explain the incongruity of a declining
gold price while fundamentals for
paper currency, and the US dollar
in particular, obviously deteriorate; while demand for physical
gold has exceeded new mine supply for several years running; and while above - ground 400 - ounce.999
gold bars located
in London, New York, and other financial capitals (
in cohabitation with speculative trading activity
in paper markets) have steadily dwindled and disappeared into Asian financial centers reformulated as.9999 kilo bars.
In addition to the possible reasons we have suggested in this report, we know that history is on the side of gold versus paper currenc
In addition to the possible reasons we have suggested
in this report, we know that history is on the side of gold versus paper currenc
in this report, we know that history is on the side of
gold versus
paper currency.
Very soon, Law's national bank began to issue much more
paper currency than it received
in gold and silver currency deposits, which created an inflationary economic «bubble boom.»
Are
gold and silver purchases more sensible than investing
in overpriced
paper debts that guarantee a negative yield
in a devaluing currency issued by a dodgy government or central bank?
Knowing that their extensive silver was worth little, what better way to cash
in on it than get a piece of
paper that says the silver can be exchanged for
gold, government - guaranteed?
While geopolitical and economic factors are pushing the price of
gold higher, the extreme dislocation between the western Central Bank short position
in gold via several different forms of
paper gold and the amount of available physical
gold to deliver into buyers» hands is going to move
gold in a way that will shock and awe everyone except maybe the hardiest
gold «bugs.»
Feel safe knowing you have real
gold and silver you can hold
in your hand not a
paper contract or promise.
The bottom line is that
gold ETFs are a financial instrument, a
paper proxy for the real thing (you own shares
in a pooled
gold fund or trust, not the metal itself).
It is also worth pointing out that downward pressure on the price of «
paper»
gold that was not supported by the «physical» market would inevitably result
in the price of «
paper»
gold making a sustained and substantial move below the price of the physical commodity, which hasn't happened.
Holders of
paper claims to
gold will receive polite and apologetic letters from intermediaries offering to settle
in cash at prices well below the physical market.
A century ago, when the terms were still current,
in most industrialized economies «money proper» consisted of
gold coins, while
paper banknotes and demand deposits that were redeemable
in gold were mere money substitutes.
A
Paper Tiger was the label that was applied to the USA as the Oil Sheiks couldn't wait to get out of Dollars and into
Gold and Swiss Franks (would you believe you had to pay 20 % negative interest if you wanted to keep more than $ 100,000
in SF).
Starting
in the 18th century, nation - states increasingly used precious metals such as
gold and silver to back their
paper money, creating a monetary system called the
gold standard.
And that is a nightmare scenario because the primary corporate objective of the typical Vancouver promoter lies not
in the realm of a new
gold discovery or near - term cash flow or added reserves, but rather
in the novel concept of «distribution» and by that I don't refer to the «distribution» of profits to shareholders by way of dividends but rather the distribution of the one - cent
paper they manufactured when they put the shell together.
Perhaps the most overlooked way to invest
in gold is the Gold IRA which has out performed almost all other paper investments such as real estate and the stock mar
gold is the
Gold IRA which has out performed almost all other paper investments such as real estate and the stock mar
Gold IRA which has out performed almost all other
paper investments such as real estate and the stock market.
Even
in modern history, the
gold backing up a single US dollar from 1971 is worth vastly more than the
paper currency that was printed 44 years ago.
Because the price - movement of
paper gold relative to the size of the Comex open interest is running
in higher
in defiance.
(1) It issues and redeems
paper money — United States and Treasury notes;... (4) it transfers money to move the crops;... (6) it acts as a regulator of the rate of discount by contracting and expanding the currency through its operations upon the deposits
in banks and
in its own vaults; (7) it keeps the
gold reserve of the country.
Investors throughout the world have lost faith
in the dollar and other
paper currencies, and are moving into
gold or simply closing off their economies.
Own enough
gold that,
in the event of a crisis, you will feel comfortable that you have enough «real savings»... but don't own so much that you're constantly worrying about the
paper price.
4) Resist the urge to value
gold in paper currency.
Annotated and edited for a contemporary audience by Rich Dad, Poor Dad and Three Feet from
Gold co-author Sharon Lechter, this book — now available
in paper — is profound, powerful, resonant, and rich with insight.
So, with the recent spike
in aluminum prices, why is it that a commodity seemingly about to be constrained by tariffs can spike 27 %
in eight weeks on «supply fears» while freighters full of
gold are allegedly being off - loaded
in Hong Kong with the
paper gold trading volumes exceedingly annual mine output?
In their May 2015 paper entitled «Lumber: Worth Its Weight in Gold: Offense and Defense in Active Portfolio Management», Charles Bilello and Michael Gayed examine the recent relative performance of lumber (a proxy for economic activity via construction) and gold (a safe haven) as an indicator of future stock market and bond market performanc
In their May 2015
paper entitled «Lumber: Worth Its Weight
in Gold: Offense and Defense in Active Portfolio Management», Charles Bilello and Michael Gayed examine the recent relative performance of lumber (a proxy for economic activity via construction) and gold (a safe haven) as an indicator of future stock market and bond market performanc
in Gold: Offense and Defense in Active Portfolio Management», Charles Bilello and Michael Gayed examine the recent relative performance of lumber (a proxy for economic activity via construction) and gold (a safe haven) as an indicator of future stock market and bond market performa
Gold: Offense and Defense
in Active Portfolio Management», Charles Bilello and Michael Gayed examine the recent relative performance of lumber (a proxy for economic activity via construction) and gold (a safe haven) as an indicator of future stock market and bond market performanc
in Active Portfolio Management», Charles Bilello and Michael Gayed examine the recent relative performance of lumber (a proxy for economic activity via construction) and
gold (a safe haven) as an indicator of future stock market and bond market performa
gold (a safe haven) as an indicator of future stock market and bond market performance.
Physical
gold that may be suffering from a falling domestic fiat currency price is still exponentially more valuable than devaluing
paper fiat currencies, as anyone living
in the Ukraine, Russia, Mexico, Brazil, Venezuela, and
in any number of dozens of other emerging markets have unfortunately rapidly learned
in the past few years.
The trick is to make sure you buy the
gold again, otherwise you will have given up your
gold and gotten only
paper in exchange.
by During this banker raid on
paper gold and
paper silver, while banking shill Nouriel Roubini was spouting more propaganda
in the distribution channels of the mass media of a
gold collapse to sub-par $ 1000 an ounce prices, we were busy informing our readers about the «Lies of Nouriel Roubini» (whose sole purpose
in life, -LSB-...]
In their January 2016
paper entitled «Are
Gold Bugs Coherent?»
In 1716, Law received the French government's permission to establish a national bank, the Banque Générale, which took in deposits of gold and silver and issued «paper» bank notes in retur
In 1716, Law received the French government's permission to establish a national bank, the Banque Générale, which took
in deposits of gold and silver and issued «paper» bank notes in retur
in deposits of
gold and silver and issued «
paper» bank notes
in retur
in return.
The following chart, taken from the
paper, shows the rolling 250 - trading day correlation between U.S. stock market returns and
gold returns (
in U.S. dollars) based on daily data.