Gold Monitoring Thread £ GBP only

[RoughDog]

1 hour ago, 9x883 said:

 

Are-you-Ken?

[Agaupl]

[m3rlin]

2 hours ago, Go65 said:

Anyone starting to think about hedging with IG et alia?

only if you have done it successfully in the past and have some sort of system/rules for this type of approach and now your rules says it's time to do it or you fill so and want to make a small bet maybe.

i did have in the last few weeks some sort of hedge i was long cfd's on gold and short silver contracts but now i'm long silver as well (makes me feel anxious now). this trade doesn't has anything to do with my physical stack as it's very small and just recently did go in physical gold it's just speculations.

2 hours ago, Go65 said:

Well not really. Say stick an option / spread bet for maybe 1/4 or so of stack value to go the other way. Just asking. For a friend. 😀

people like as should stay away from options

[Go65]

2 minutes ago, m3rlin said:

only if you have done it successfully in the past and have some sort of system/rules for this type of approach and now your rules says it's time to do it or you fill so and want to make a small bet maybe.

i did have in the last few weeks some sort of hedge i was long cfd's on gold and short silver contracts but now i'm long silver as well (makes me feel anxious now). this trade doesn't has anything to do with my physical stack as it's very small and just recently did go in physical gold it's just speculations.

people like as should stay away from options

Thanks. Message understood. I’ve been far too generous with my silver membership love so here are some that don’t cost ❤️ ❤️❤️

[Chronos]

China Gold-Buying Frenzy Sparks Chaos In ETFs:

https://www.zerohedge.com/markets/china-gold-buying-frenzy-sparks-chaos-etfs

[HonestMoneyGoldSilver]

WARNING: TL:DR

Is the current gold rush sustainable?

A better question:

Are the sovereign debts of the US, EU, UK and China sustainable?

Gold is essentially the inverse of debt - when debt accelerates, gold goes up

We talk a lot about China buying gold but don't spend a lot of time fully investigating why. Is it BRICS? Is it a communist master plan of de-dollarisation? 

No, the CCP and Chinese financial system are doing it out of necessity, same as the rest of us. China has printed more money than the western world combined. The Chinese are in a desperate scramble to swap their currency for something a bit more, you know, valuable, like oil (Saudis) and gold

The local and regional banks in the Chinese system have been instructed to stack physical gold as a hedge against their property market and manufacturing sector. That's why there's a premium on physical gold in China - they don't just want it for political purposes, they need that gold for their survival

Despite the insanity going on in the USA with a POTUS more interested in pronouns than profits, it will be China's currency that goes to the wall first. When you hear commentators talk about de-dollarisation and the end of American hegemony, don't forget the studies show the USD will be the LAST currency to fail. The USD might not survive a great deal longer than other currencies but the Euro, Yen, GBP and RMB will collapse before the USD collapses. 

The concept of de-dollarisation is global, global financial collapse. Peter Schiff talks a lot about the collapse of the US but fails to provide a credible successor, other than the usual talk of currency revaluation vs metals (making gold and silver stupendously valuable like buying a mansion for a tube of silver Britannias)

Many have posted here before that the ATH for gold when adjusted for inflation is well north of $3,000. We can hit $3,000/oz without breaking sweat. 

If we use shadowstats or alternative metrics we can say the inflation-adjusted ATH is actually >$5,400:

https://www.bullionvault.com/gold-news/gold_price_inflation_010620119

We can go well beyond that with debt creation and inflation, with market expectations for debt to accelerate when the central banks cut rates. The debt burden is unsustainable. The only tool available to service that debt is to erode the real terms burden with inflation -> pump gold. It's not just sovereign debt but the robustness of corporate debt in general is starting to worry people. The commercial real estate debt component is a ticking time bomb

Rate cuts will be global. Nobody will cut before the Fed cuts unless they specifically want to encourage inflation (like Japan) or have an economic crisis, but once our global overlord flicks the switch, everybody else will likely follow. 

There is an argument for the BoE not cutting, allowing GBP to appreciate and using that as a tool to battle inflation. The penalty for that might be domestic recession and financial burden on mortgagees and borrowers, including the government itself. We'd also be living in cloud cuckoo land, identifying as a nation that can service its debts without inflation. The ugly truth is that inflation is essential to all sovereign governments due to the chronic corruption and mismanagement of previous regimes over several decades. 

If gold kept up its recent price action (adding 8%/month) for a full year then gold would be close to that $5400 inflation-adjusted ATH

Will gold keep up this pace? Theoretically it can but it would require some sort of additional catalyst IMHO

I have no doubt gold will continue to go up and the price is justified, my worry is does everybody else know this? How much of the recent price action is speculative and can be reversed vs sticky long term physical stacking?

If gold is the ultimate security, a stable store of real wealth, it's hard to justify rapid appreciations without expecting some sort of reversal. If a rapid appreciation (2.5x current price minimum) is justified then it tells us that the global financial system is close to the end times. That has all sorts of ramifications with the most likely one being a repeat of the 1930s (Great Depression - WWII)

We will get a better indicator this summer. The current price action while fun isn't of great importance. If gold continues to go up this summer then either we go to the moon when the central banks cut or it's been a paper scam, buy the rumour sell the news. A more gradual appreciation of metals is preferable to manic price action that causes global instability. High volatility does not favour us, it favours traders and the super wealthy (volatility = profit)

Gold might temporarily make you a king (Rafi Farber-style) but gold is not for getting wealthy, it is for preserving wealth

[PhilB]

4 hours ago, 9x883 said:

Is this rate of increase sustainable?🤷‍♂️

No, but very welcome and enjoyable.! Like other things in life 😊

[silversky]

Your post insinuates an important point.  A return to honest valuations necessitates the collapse of the whole fiat system worldwide.  Quite literally everything is running on the too big to fail mantra right now.  Do we even want to see real value as individuals?  The price would almost certainly see Armageddon for many of us, and the beans index would trump gold and silver for a while.  Many of our children would be killed in pointless wars, even if we somehow managed to avoid a cataclysmic nuclear exchange.  Cheery thought for the day...   Is accepting the financial blue pill actually better for us now?

[Petra]

4 hours ago, 9x883 said:

It's like staring in a mirror

 

Try breaking in while I’m not in and he will rip yer throat out..😮🐶🐶😁

[BLOOMMAN101]

Head n shoulders??

[Darr3nG]

4 minutes ago, BLOOMMAN101 said:

Head n shoulders??

Dandruff free

[Sovhead]

4 minutes ago, BLOOMMAN101 said:

Head n shoulders??

Reported.

[davejones]

USA CPI tomorrow,  if it goes up we might get a gold price correction??

[Go65]

6 minutes ago, davejones said:

USA CPI tomorrow,  if it goes up we might get a gold price correction??

Yes I reckon. We are only up 0.75% in $ terms so far today. Should be much more. A correction is needed😀😀😀

[Go65]

16 minutes ago, davejones said:

USA CPI tomorrow,  if it goes up we might get a gold price correction??

On a more serious note though, there seems to be a bit of a disconnect at the minute with normal rules not really applying. 

Edited April 9 by Go65

[DisplayName]

39 minutes ago, Go65 said:

On a more serious note though, there seems to be a bit of a disconnect at the minute with normal rules not really applying. 

I'd the board flipped and the eastern powers are now playing the game, it's by their rules. 

[Paul]

Another steadyish day for gold thus far

Is it just me who's just waiting for the monster of all smack downs to happen as has happened numerous times in past decade plus we've lived and stacked through?

Imagine if smack downs are a thing of the past and it's only progressively up in a monster bull 🐂 run instead

Who, knows

Enjoy the journey. The slow scenery is especially nice to view rather than trying to try and count the track sleepers every second below you 

 

Edited April 9 by Paul

[HerefordBullyun]

2 hours ago, Go65 said:

Yes I reckon. We are only up 0.75% in $ terms so far today. Should be much more. A correction is needed😀😀😀

FOMC rate decision is when we see some moving and grooving 

[BLOOMMAN101]

8 minutes ago, Paul said:

Another steadyish day for gold thus

Is it just me who's just waiting for the monster of all smack downs to happen as has happened numerous times in past decade plus we've lived and stacked through?

Imagine if smack downs are a thing of the past and it's only progressively up in a monster bull 🐂 run instead

Who, knows

Enjoy the journey. The slow scenery is especially nice rather than trying to try and count the track sleepers every second 

 

It's like one -of those old war movies hiding in a foxhole waiting on the enemy,  It will make you stronger mate build moral fibre and all that  either that or

[KRO]

well worth the read

https://www.metalsdaily.com/archive/ross-norman-where-the-buying-is-coming-from-/352537

[Paul]

13 minutes ago, KRO said:

well worth the read

https://www.metalsdaily.com/archive/ross-norman-where-the-buying-is-coming-from-/352537

Good read that for sure. Thanks for posting it up

The dropping physical western demand from mint very interesting 

take paragraph

" In the absence of the identity being known, many use the blank canvas to pitch their favourite culprit ... Chinese Gen Z buyers, BRICs nations de-dollarising, non-aligned central bank demand, algos … banks short-covering, the list is long... meanwhile the chatterati on Zerohedge point out real inflation rates, WW3, impending civil war in the US, the unsustainable US debt levels.

In short ... it has given everyone an opportunity to showcase their pet grievance or concern. ' 

[Chronos]

3 Gold Charts We are Watching: Time to Chill:

https://archive.is/ssoel

[Paul]

9 minutes ago, Chronos said:

3 Gold Charts We are Watching: Time to Chill:

https://archive.is/ssoel

Do you know what gold is correlated against on this graph ?

[Gruff]

4 minutes ago, Paul said:

Do you know what gold is correlated against on this graph ?

The purple is someone's heart rate

[Paul]

31 minutes ago, Gruff said:

The purple is someone's heart rate

Was it a silver stackers pulse ?

( Asking for a friend )