Why is Gold Rallying to New Highs Against Most Majors?
While I am no gold expert and I would be the first to tell you that, I have some speculative theories on the precious metal that I think are as good as any explanations that you have at the moment.
First of all we need to look at the bond markets incredible rise or fall. I told you of this as you might recall months ago. This month especially the bond market sank or rose (depending on what chart you are looking at) quite substantially. It is now at 130.00 now as I write. This is likely in response to the Fed signaling lower interest rates for the foreseeable future. However, we are nearing the end of the move I believe unless they go negative which will force the price even lower. We indeed live in interesting times when you are selling negative yields where not only do you get nothing for your investment but you actually owe money. Honestly, you can't make this stuff up.
The plunge protection team is keeping the stocks at record highs. Yes, there has been a huge amount of insider selling lately but all this means is that the central banks will simply buy more of their stock to keep prices sky-high. It isn't a reflection of fair market price discovery because there isn't any. It is simply one entity selling to the other at any price. The buyer is not worried about value or time.
Now we see gold skyrocketing against most currencies making new highs. The only major it hasn't made a new high against is the US Dollar but that will come soon enough. Canada and Australia have seen the highest run ups.
Anyone know why?
Right. Debt. These two bozos never bothered to take a break back in 2008 when the markets crashed. They kept their property bubbles climbing and allowed their citizens to rack up ridiculous amounts of debt. I think that this is what gold is telling the markets as of late and reckless central banks. However, let's not forget that paper gold is what controls the price. For some reason, gold is being allowed to climb now. In light of the US Dollar which has remained sideways to up.
Now I am not much of a conspiracy theorist but it would seem like some sort of reset is being attempted. Nothing else makes any sense. It is not like central banks couldn't control the price of gold because they could. The US Dollar is still the reserve currency. Could it be that they have decided to go with some sort of SDR backed with Gold as a new reserve currency?
Hard to say.
The movement of gold after being suppressed for so long is the real mystery.
Why now?
No, my friends, something is up. If I had to draw any conclusions it would be that a new gold standard is being issued in. I think that the present system is sufficiently broken with huge debt that they have no way to rectify these imbalances any more. They realize that people have taken on far too much risk and too many bubbles have been blown. I mean how do you get out of this pandora's box that central banks find themselves in at the moment. The answer is not an easy one but I don't think that they can rectify this problem. I think that they realize it will only get worse as long as they keep printing money.
I am not saying a strict gold standard is an answer either. It probably isn't. I mean gold is an old system. Probably not very good for 2019. Yes, it would hold governments accountable but what about all these obligations that they have to their people? I mean with the largest generation that has ever been all moving into retirement and old age are you going to try to tell them that they are on their own now? After paying into the system for as long as they have? Hmmm.....I wouldn't want to be the politician springing that one on them.
I don't see gold being a way of doing business either or having a use storing it. So that is probably not the answer either. However, a reset is very possible. Inflating the debt away through higher gold just might be what they have in mind. Time will tell.
First of all we need to look at the bond markets incredible rise or fall. I told you of this as you might recall months ago. This month especially the bond market sank or rose (depending on what chart you are looking at) quite substantially. It is now at 130.00 now as I write. This is likely in response to the Fed signaling lower interest rates for the foreseeable future. However, we are nearing the end of the move I believe unless they go negative which will force the price even lower. We indeed live in interesting times when you are selling negative yields where not only do you get nothing for your investment but you actually owe money. Honestly, you can't make this stuff up.
The plunge protection team is keeping the stocks at record highs. Yes, there has been a huge amount of insider selling lately but all this means is that the central banks will simply buy more of their stock to keep prices sky-high. It isn't a reflection of fair market price discovery because there isn't any. It is simply one entity selling to the other at any price. The buyer is not worried about value or time.
Now we see gold skyrocketing against most currencies making new highs. The only major it hasn't made a new high against is the US Dollar but that will come soon enough. Canada and Australia have seen the highest run ups.
Anyone know why?
Right. Debt. These two bozos never bothered to take a break back in 2008 when the markets crashed. They kept their property bubbles climbing and allowed their citizens to rack up ridiculous amounts of debt. I think that this is what gold is telling the markets as of late and reckless central banks. However, let's not forget that paper gold is what controls the price. For some reason, gold is being allowed to climb now. In light of the US Dollar which has remained sideways to up.
Now I am not much of a conspiracy theorist but it would seem like some sort of reset is being attempted. Nothing else makes any sense. It is not like central banks couldn't control the price of gold because they could. The US Dollar is still the reserve currency. Could it be that they have decided to go with some sort of SDR backed with Gold as a new reserve currency?
Hard to say.
The movement of gold after being suppressed for so long is the real mystery.
Why now?
No, my friends, something is up. If I had to draw any conclusions it would be that a new gold standard is being issued in. I think that the present system is sufficiently broken with huge debt that they have no way to rectify these imbalances any more. They realize that people have taken on far too much risk and too many bubbles have been blown. I mean how do you get out of this pandora's box that central banks find themselves in at the moment. The answer is not an easy one but I don't think that they can rectify this problem. I think that they realize it will only get worse as long as they keep printing money.
I am not saying a strict gold standard is an answer either. It probably isn't. I mean gold is an old system. Probably not very good for 2019. Yes, it would hold governments accountable but what about all these obligations that they have to their people? I mean with the largest generation that has ever been all moving into retirement and old age are you going to try to tell them that they are on their own now? After paying into the system for as long as they have? Hmmm.....I wouldn't want to be the politician springing that one on them.
I don't see gold being a way of doing business either or having a use storing it. So that is probably not the answer either. However, a reset is very possible. Inflating the debt away through higher gold just might be what they have in mind. Time will tell.
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