and Nixon had suspended the dollar's convertibility into gold in 1971.
Absent of new physical sources to control price, investment products were soon created as vehicles for the purpose of siphoning off physical investment demand, Of course, it's not just futures/derivatives contracts that serve as gold price exposure
The decades that followed led to even more synthetic gold creation through "investments" such as unallocated accounts and ETFs. However, it is the trading of the derivative (futures) contracts that are still utilized to determine price.
The Bullion Banks use their monopolistic dominance of these "markets" to control price and selfishly profit at the same time
So it's imperative that you, as a precious metals investor and enthusiast, understand the dynamics of this fraudulent and illegitimate pricing scheme.
So it's imperative that you, as a precious metals investor and enthusiast, understand the dynamics of this fraudulent and illegitimate pricing scheme.
The price you pay for physical gold and silver is NOT determined by an exchange of cash for metal. Instead, it's determined by the trading of futures contracts— the supply of which is controlled by the market-making Banks
Following the Lehman Bros collapse in Sept 2008, the correlations between the S&P 500 index and gold, or Swiss Franc, or US Treasuries were all around minus 40%. During March and April 2020 the correlation between the S&P 500 index and gold was plus 20%.
As the S&P 500 crashed in March 2020, gold had its worst week in eight years when it should have been its best, because of massive shorts on COMEX gold futures.
Hedge funds are now large players in the gold market. To a hedge fund, gold may be an interesting market in which to deploy its trading style. To them, gold is just another tradable commodity.
A way to manipulate the price is through gold leasing and “unallocated forwards.” When most large gold buyers want to buy physical gold, they’ll call JPMorgan Chase, HSBC, Citibank, or one of the large gold dealers.
There’s no group of gold bars that have your name on them or specific gold bar serial numbers that are registered for you.
There are risks involved, storage costs, transportation costs, and insurance costs.
There are risks involved, storage costs, transportation costs, and insurance costs.
The Investors , Traders are happy to leave it in the bank. What they may not realize is that the bank doesn’t actually have it either. The banks keep selling Gold on an unallocated basis without having physical storage.
We are witnessing financial market manipulations on a scale and frequency that have rarely been seen before.
srinivasane2f.substack.com/p/gold-is-it-r…
srinivasane2f.substack.com/p/gold-is-it-r…
@threadreaderapp
Unroll
Unroll
