For the last 40 years, the financialised price of gold (commonly expressed as XAU/USD), has been the function of the market maker's willingness and ability to extend $ based gold credit. 1/4
The last 72 hours will have fundamentally altered how market makers view risk and exposure, and there's a good chance the volumes of gold credit we have seen over the years may never return. 2/4
Liquidity is looking for an escape route, and some of that liquidity is trying to force it's way into physical. However for now, the majority appears to be running from one burning building into another, with EFP basis the canary. 3/4
The solution has and always will be 1x ownership in the monetary metals and high quality miners. No need for any synthetic leverage - the unwind of the fiat credit bubble will do all the heavy lifting. 4/4
