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https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=13107
I’d forgotten about that commercialDidn't want to create an account to read the link but the headline seems off to me. Buying gold makes sense especially if the currency is getting weaker, not in spite of that fact.yankees60 wrote: ↑Thu Apr 25, 2024 1:03 pm https://www.businessinsider.com/gold-pr ... ion-2024-4
ECONOMY
People in China are so spooked about the economy that even the weak yuan isn't stopping them from buying more gold
Huileng Tan Apr 22, 2024, 2:33 AM EDT
It loaded for me. Maybe we get a few free reads per month?
Weaker Yuan/RMB (relative to other currencies) = Cheaper exports, and more expensive imports
When there's 123 times more paper gold than physical gold then unless its in your own hands there is a risk that a gold-rush could see claims by others that all of their physical gold had been deployed/disappeared. Audited as being there one day, but then in a gold-rush perhaps a conflicting deal/swap that resulted in settlement that had little/none left being produced as the reason for bankruptcy.
Yes. If there was a gold-rush where delivery was being commonly demanded instead of cash settlement that would require gold having to be sourced, potentially in part via swaps with those that held physical for a very attractive rate. If that pans out to fill the demand then fine, but if a trickle turns into a torrent and simply there just isn't enough gold to meet the demand for physical delivery! Likely amplified by the introduction of export restrictions. Under such conditions it could be more a case of first come first served and where typically institutes will be ahead of the crowd. Those that write/sell the contracts are pressured into securing actual physical gold or otherwise potentially be bankrupt. How well or not the likes the managers of physical backed gold funds respond to very attractive offers at the time is a unknown until after the event.coasting wrote: ↑Sun Apr 14, 2024 9:37 pmWhile "paper gold" is often a term used to describe gold ETFs, from the context of Seajay's comments I instead understood him to be using "paper gold" to refer to gold options. In which case, yes the outstanding gold options could far exceed the physical gold available. Most traders close out the option position prior to expiry and collect the cash. What if they don't and instead say "I'll take it, deliver my gold". Seajay, am I interpreting your comments correctly?
My personal narrative is that everything is an inflation hedge now. The economic praxis now is simply: when the new money arrives, throw it at anything that might go up. The only economic data point that matters (even though it is not expressed with candor anywhere) is the amount of new money coming in. The most important question is: how much are they going to print this time? Thus, everything rises and falls in lockstep: stocks, gold, real estate, not to mention the entire cryptocurrency market that likely could only happen in this hyperinflationary economy.barrett wrote: ↑Wed May 22, 2024 6:26 am I am curious if any on here have updated their personal narrative about what drives gold prices. Seems like the price of gold is responding to economic data more or less in lockstep with stocks. For example, a weaker jobs report gives people the hope that Fed rate cuts may happen sooner rather than later and both stocks and gold go up.
https://www.kitco.com/news/article/2024 ... cord-highsWestern investors appear to be finally having a positive impact on the gold market, or at the least, they are not getting in the way of higher prices, according to one market analyst.
In his latest comments on the gold market, Carsten Fritsch, precious metals analyst at Commerzbank, said that current market conditions, while supportive for gold, do not fully explain the precious metal’s rally to a new record high above $2,450 an ounce.
...
Fritsch said that a short-term shift in investor demand in gold-backed exchange-traded funds (ETFs) is the only significant factor explaining gold’s recent price action.
Trading data from SPDR Gold Shares (NYSE: GLD) shows that its gold holdings have seen a modest increase, rising by eight tonnes in the last 11 days.
Fritsch added that Friday saw GLD’s biggest one-day increase in holdings in two months.
......
As beautiful as silver is, I think I would rather buy fractional gold.
That seems more or less correct.ArthurPooh wrote: ↑Wed May 22, 2024 10:35 amMy personal narrative is that everything is an inflation hedge now. The economic praxis now is simply: when the new money arrives, throw it at anything that might go up. The only economic data point that matters (even though it is not expressed with candor anywhere) is the amount of new money coming in. The most important question is: how much are they going to print this time? Thus, everything rises and falls in lockstep: stocks, gold, real estate, not to mention the entire cryptocurrency market that likely could only happen in this hyperinflationary economy.barrett wrote: ↑Wed May 22, 2024 6:26 am I am curious if any on here have updated their personal narrative about what drives gold prices. Seems like the price of gold is responding to economic data more or less in lockstep with stocks. For example, a weaker jobs report gives people the hope that Fed rate cuts may happen sooner rather than later and both stocks and gold go up.
And yet the price of gold got battered yesterday, apparently due to the strong jobs report which further pushes back potential Fed rate cuts. Wage growth was also "disappointingly" strong. It seems to me that gold is currently a disinflationary hedge.I Shrugged wrote: ↑Thu May 23, 2024 6:43 pmThat seems more or less correct.ArthurPooh wrote: ↑Wed May 22, 2024 10:35 amMy personal narrative is that everything is an inflation hedge now. The economic praxis now is simply: when the new money arrives, throw it at anything that might go up. The only economic data point that matters (even though it is not expressed with candor anywhere) is the amount of new money coming in. The most important question is: how much are they going to print this time? Thus, everything rises and falls in lockstep: stocks, gold, real estate, not to mention the entire cryptocurrency market that likely could only happen in this hyperinflationary economy.barrett wrote: ↑Wed May 22, 2024 6:26 am I am curious if any on here have updated their personal narrative about what drives gold prices. Seems like the price of gold is responding to economic data more or less in lockstep with stocks. For example, a weaker jobs report gives people the hope that Fed rate cuts may happen sooner rather than later and both stocks and gold go up.
Rumor i saw on X is that Chinese buyers wanted to buy (more) gold, but there are/were supply chain issues limiting available supply:mathjak107 wrote: ↑Sat Jun 08, 2024 5:56 am... China was loading up on gold for 18 months and it was learned they paused. ...