Gold and What Moves it.
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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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Is 'Inept' CFTC "The Get-Away Driver" For PFG? | ZeroHedge

posted by Tyler Durden on ZeroHedge:

 

"I expect to lose money because of the complete incompetence of the Federal regulators" is how Factor LLC's Peter Brandt describes the farce that has rapidly become bankrutpcy for PFG Best to Bloomberg TV today. As we noted earlier, the recent and clearly total ineptitude of the CFTC in identifying (and acting upon) falsehoods is incredible - and twice within one year on a massive scale. In a little over two minutes, Brandt questions the entire CFTC regulatory structure of FCMs and summarizes his views when he reflects on the MFGlobal situation with "the CFTC as the get-away driver of the robbery". What they do in the case of PFG is unclear but we (like Brandt) "have no trust and no faith that the CFTC is capable of handling this mess ..."

 

Click through for video.

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Richard Russell - Gold, Stocks & Massive Fed Manipulation

Richard Russell - Gold, Stocks & Massive Fed Manipulation | Gold and What Moves it. | Scoop.it

With continued uncertainty in global markets, the Godfather of newsletter writers, Richard Russell, wrote, “...we see the stock market up on Fed-created stilts ... I'm stating that deflationary and deleveraging forces are still in command, and all the Fed's manipulations are, and will, fail to turn the bear market into a new bull market.”

 

Russell also pondered, “Yes, we had the usual late-session rally ... Is the Fed buying the Dow at the close? It wouldn't surprise me.” But first, this is what Russell had to say about gold: “Most of my subscribers are interested in gold. All I'm going to say about gold is wrapped up in the chart below. Here we see gold in a large rectangle formation. The 1550 level has been tested numerous times and it has shown to be solid support.

 

"Now gold has its choice of breaking out on the upside of the rectangle or on the downside ... It's obvious that there are buyers at 1550 or below, and that there are sellers near the 1800 area. All of which has given us a trading range of almost one year. ..."

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Get ready for gold bullion's season of strength

Get ready for gold bullion's season of strength | Gold and What Moves it. | Scoop.it

by Don Vialoux:

The Globe and Mail:

 

"The period of seasonal strength for gold bullion is approaching.

 

"Thackray’s 2012 Investor’s Guide notes that the optimal time to invest in gold bullion for a seasonal trade is from July 12 to Oct. 9. The trade has been profitable during 11 of the past 14 periods. During the past 25 periods, gold bullion has outperformed the S&P 500 Index by 4.7 per cent per period.

 

"Traditionally, advances in gold during its period of seasonal strength is attributed to precious metal fabricators in India who purchase bullion to make into jewellery for the Indian wedding season that starts in late October. India is the second-biggest consumer of gold jewellery in the world behind China.

 

"However, demand for gold jewellery in India is expected to be lower than usual this year because the price of gold in Indian rupees has moved sharply higher. Indian rupees recently fell to an all-time low relative to the U.S. dollar. The cost of gold jewellery in India has skyrocketed with the price of gold.

 

"Despite reduced demand for gold in India, prospects for the seasonal trade this year are higher than average. Demand for gold is increasing. Chinese consumer purchases of jewellery continue to increase. ..."

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Jim Rogers` views on oil, gas, nuclear energy, #gold, geopolitics - and children

Jim Rogers` views on oil, gas, nuclear energy, #gold, geopolitics - and children | Gold and What Moves it. | Scoop.it

Jim Rogers told Oilprice.com:

 

"Oilprice.com: You've owned gold for 11 years now and the price is currently correcting. Do you see this as a buying opportunity or would you wait a little longer?

 

"Jim Rogers: I've actually owned gold for longer than 11 years. I'm not buying now. Gold went up 11 years in a row, which is extremely unusual for any asset. I don't know of any asset in history that's gone up 11 years in a row without a correction.


"Corrections are normal and are the way things should work, the way things do work. Having said that, I don't know when the correction will stop. It's normal in my experience for corrections to go down 30 or 40%. It's just the way markets work.


"Gold has not gone down that much. It's only gone down that much once in the past 11 years, and even then it ended the year up. I'm not buying gold at the moment. If it goes down a lot, I hope I'm smart enough to buy a lot more. I'm certainly not selling my gold, because I suspect gold will be much, much, much higher over the next decade. ..."

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BARGAIN BASEMENT SILVER PRICES - The Prospector Blog

BARGAIN BASEMENT SILVER PRICES - The Prospector Blog | Gold and What Moves it. | Scoop.it
TheProspectorSite.com

 

"... If the truth be known, some of you are second guessing silver’s worthiness. One of my readers went so far as to email asking for the best way to sell silver bullion purchased last year. Now I’m not trying to be critical here but isn’t this like selling the ship’s life vests under cloudy skies? This leads me to explain why silver is so necessary, and cheap.

"Nothing, not even gold, has the track record of physical silver. Silver is the truest source of money throughout history and more have labored in exchange of silver than any other means of monetary reward. Most of the world longs for silver but even today’s prices are far beyond the reach of our world’s poor. The best they can hope for is shelter, food and clean water; silver is far off the radar.

 

"But you have choices, this makes you different. You have the ability to buy silver but few take advantage of the second most used commodity that is also money. You see silver as an asset in decline but fail to see silver’s long-term value in an age of currency correction and decimation.


"Our technology age thirsts for silver like never before even ..."

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oftwominds-Charles Hugh Smith: The Global Economy: It's All About Increasing Leverage

oftwominds-Charles Hugh Smith: The Global Economy: It's All About Increasing Leverage | Gold and What Moves it. | Scoop.it

From Charles Hugh Smith:

 

"If the global State/finance Empire can't increase systemic leverage, it will implode.

 

"If we look at the global economy with unclouded eyes, we reach this conclusion: "This whole thing is about leverage." If leverage doesn't increase, the system implodes. But since collateral is disappearing from the global economy like sand castles in a rising tide, and disposable income has stagnated, there is no foundation for more leverage.

 

"As a result, the State/finance cartel has only one choice: increase leverage by whatever means are left. There are only two:

 

1. Allow banks to claim phantom assets as capital/reserves
2. Lower interest rates so stagnant income can leverage ever greater quantities of debt

 

"The State/finance Empire and its army of academic toadies (economists) must cloak this reliance on leverage from the citizenry, lest they grasp the precariousness of the entire financial system. As the economic Establishment is discredited by reality (that their sputtering reflation policies have come at an unbearable cost is now undeniable), their attempts to discredit their critics become increasingly comic: only PhD economists in the employ of the Empire are qualified to comment on the Empire's policies, etc. ..."

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ECRI's Achuthan: I Think We're in a Recession Already | Bloomberg | Safehaven.com

ECRI's Achuthan: I Think We're in a Recession Already | Bloomberg | Safehaven.com | Gold and What Moves it. | Scoop.it

Bloomberg:

 

"Lakshman Achuthan, co-founder of the Economic Cycle Research Institute, spoke with Bloomberg Television's Tom Keene today and said that, "What we said back in December was that the most likely start date for the recession would be in Q1 and if not then, by the middle of 2012. I'm here to reaffirm that. I think we're in a recession already."

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On Gold As A Hyperinflation Put | ZeroHedge

On Gold As A Hyperinflation Put | ZeroHedge | Gold and What Moves it. | Scoop.it

Tyler Durden:

 

"... However, one important conclusion is that their analysis shows that the price of gold is very sensitive to even a remote possibility of another Weimar Republic-like inflation episode. So while there is disagreement over gold as an inflation-hedge, it is critically a levered option on hyperinflation as even extraordinarily small probabilities of 'extreme' inflation will have a large impact on the possible future price of gold."

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What's Iran doing with Turkish gold? Accepting payment for oil | Gold Anti-Trust Action Committee

What's Iran doing with Turkish gold? Accepting payment for oil | Gold Anti-Trust Action Committee | Gold and What Moves it. | Scoop.it

By Humay Guliyeva and Pan Kwan Yuk
Financial Times, London
Monday, July 9, 2012

 

"What’s Iran doing with Turkish gold?

 

"That is the question [the] Beyondbrics [column] found itself asking after it had a look at Turkey's latest trade figures.

 

"According to data released by the Turkish Statistical Institute (TurkStat), Turkey's trade with Iran in May rose a whopping 513.2 per cent to hit $1.7 billion. Of this, gold exports to its eastern neighbour accounted for the bulk of the increase. Nearly $1.4 billion worth of gold was exported to Iran, accounting for 84 per cent of Turkey's trade with the country.

 

"So what's going on?

 

"In a nutshell -- sanctions and oil. ...

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The Golden Truth: Systematic Wealth Confiscation

The Golden Truth: Systematic Wealth Confiscation | Gold and What Moves it. | Scoop.it

from Dave in Denver:

 

"[S]ome accounting irregularities are being investigated regarding company accounts...What this means is no customers are able to trade except to liquidate positions. Until further notice, PFGBEST is not authorized to release any funds" - that is the notice given to brokerage customers of PFGBest, Peregrine Financial Group.

 

"PFGBest is not authorized to release any funds." Get used to seeing brokerage notices like that. That is what happened with MF Global. It's also, in part, what happened with Lehman. There's also a common thread behind these brokerage firm collapses: JP Morgan and the systematic confiscation of your wealth. JP Morgan was one of Lehman's big custodial banks, JP Morgan was the custodian for MF Global's failed book of investments and JP Morgan is the custodian for PFGBest's FX business, which is around $220 million - the amount of missing client funds. ..."

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Trader Dan's Market Views: US Dollar Looks Strong

Trader Dan's Market Views: US Dollar Looks Strong | Gold and What Moves it. | Scoop.it

Trader Dan Norcini: 

 

"The rally in the US Dollar continues not out of any particular set of strong fundamentals in the US but rather out of a general aversion to the Euro and by consequence, to the European currencies.

 

"While the Fed seems to be basically standing pat for the immediate moment, the Bank of England has announced another round of its bond buying program while the ECB has lowered rates. Given that backdrop and the lingering fears and uncertainty over the bailout mechanism put in place by the European finance ministers and political leaders, traders continue to bid up the Dollar. This buying is a reflection of the unease among traders over current market conditions. People are confused to say the least and when they are, moves tend to be exaggerated as liquidity is falling off with some either lightening up or simply moving to the sidelines altogether. ..."

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China Imports More Gold From Hong Kong In Five Months Than All Of UK's Combined Gold Holdings | ZeroHedge

China Imports More Gold From Hong Kong In Five Months Than All Of UK's Combined Gold Holdings | ZeroHedge | Gold and What Moves it. | Scoop.it

by Tyler Durden: "There are those who say gold may go to $10,000 or to $0, or somewhere in between; in a different universe, they would be the people furiously staring at the trees. For a quick look at the forest, we suggest readers have a glance at the chart below. It shows that just in the first five months of 2012 alone, China has imported more gold, a total of 315 tons, than all the official gold holdings of the UK, at 310.3 according to the WGC/IMF (a country which infamously sold 400 tons of gold by Gordon Brown at ~$275/ounce)."

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Ed Steer on #Silver Shorts

Ed Steer on #Silver Shorts | Gold and What Moves it. | Scoop.it

Ed Steer writes:

 

"Four [4] U.S. Banks are net short 18,272 Comex silver contracts...an insignificant decline of 600 contracts from their June position. I'd bet serious coin that about 80% of this amount is held by JPMorgan...and 19.99% is held by HSBC USA. The other 0.01 percent is held by Citigroup and one other bank...but are immaterial, regardless.

 

"The 11 non-U.S. banks that hold Comex silver contracts are net long 904 contracts...a minor drop of about 300 contracts from the June BPR.

 

"The net Commercial short position in silver in last Friday's COT report was 17,354 Comex contracts. JPMorgan and HSBC hold over 100% of that amount in silver all by themselves. And as I pointed out in the previous paragraph, the 11 non-U.S. banks are actually net long the silver market.

 

"This is not rocket science, dear reader, as the silver price management scheme is obviously 100% 'Made in America'. And with 4 U.S. banks holding just about 50% of the Commercial net short position in gold, they are a powerful force to be reckoned with in gold as well...especially since they collude in this price fixing scheme. When I say "JPMorgan et al"...or 'da boyz'...that's who I'm referring to. Most of the 'et al's are not U.S. banks...but other Commercial traders that work together with JPMorgan.

 

"This is precisely the same way that the LIBOR scandal works/worked. I would guess that a lot of other markets work that was as well...and the dollar index and the New York equity markets would be two others that fall into that category.

 

"As GATA's Chris Powell said..."The are no markets anymore...only interventions. ..."

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Opinion: Losing faith in the system

Opinion: Losing faith in the system | Gold and What Moves it. | Scoop.it

David Levenstein maintains that given the state of the global monetary system, now more than ever, it is important to hold physical gold.

 

Author: David Levenstein
JOHANNESBURG -

 

"Our modern day monetary system has been pervaded by greedy, power seeking liars, thieves and cheats. A week does not go by without a new story about another bank fraud or some illegal activity perpetrated by a supposedly "reputable" financial institution. And it seems that the more reputable the institution, the bigger the fraud. The latest LIBOR scandal is just another example of our corrupt monetary system.

 

"Libor is the benchmark for trillions of dollars of loans worldwide -- mortgage loans, small business loans, personal loans. It is believed that Libor is tied to transactions with a notional value of $500 trillion, and that it is the most important bench mark regarding interest rates. The recent LIBOR scandal is probably the biggest banking scandal in history. So far, the scandal has been limited to Barclays, a big London-based bank that just paid $453 million to U.S. and British bank regulators. But, be rest assured that they are not the only bank involved in this scam. All major UK banks, including the Bank of England have been implicated and so has the British government.


"Whether it is Robert Diamond, the Deputy Bank of England Governor Paul Tucker, or John Corzine of MF Global, when questioned they suddenly suffer from memory loss and deny any knowledge of any of the events in question. But, no doubt their net wealth has expanded exponentially, and for sure none of them will ever be convicted. Yet, the former head of the IMF, Dominique Strauss Khan was arrested on some futile allegation of sexual harassment. And, if some poor soul who has been out of work for months and who out of desperation has been forced to commit a crime in order to buy food for his family, be sure will be arrested and given life imprisonment. ..."

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Trader Dan's Market Views: More Long Term Bearish News for the US Dollar

Trader Dan's Market Views: More Long Term Bearish News for the US Dollar | Gold and What Moves it. | Scoop.it

Trader Dan begins his blog post:

 

"While the near term chart picture for the US Dollar is decidedly friendly, more and more frequently we are reading reports such as the following out of Dow Jones.

 

"It is not difficult to see where all of this is heading. The US is declining and going the way of all empires and kingdoms throughout history who spent themselves into oblivion and refused to consider the long term implications of their policies.

 

"Esau squandered his birthright for a bowl of stew. The US monetary authorities and inept political leaders have squandered the Dollar's reserve currency status for what??? A pox on the whole pathetic batch of them all. ..."

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The War Between Manipulation and Buying « Jim Sinclair's Mineset

from Jim Sinclair's desk:

 

"My Dear Extended Family,

 

"Next week is the war between manipulation of gold by the West, and appetite for buying gold in the East, both from friendlies and enemies. Anyone that does not see today’s gold market as a rig is blind or brain dead. There is a full blown crisis in Western world banking today, right here and now. There is a full blown crisis in sovereign debt of some weaker nations as in a very short while certain government will be out of money. The Eurosnobs hate each other which does not make for a fast reconciliation of a crisis.

 

"It is a myth that Western banks are strong enough to weather the storm of a full blown banking crisis in Europe.

 

"It is a myth that the Federal Reserve will stand as the one hawk in the Western world and fiddle while it’s Rome burns.

 

"It is a myth that Obama could be re-elected if the Fed remains intransigent.

 

"It is a myth that Finland or Germany will strike a match to the euro that totally wipes out the largest part of their exports. ..."

 

[Click through for the rest of what Sinclair has to say.]

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Eric De Groot: Was Gold Manipulated Like Libor Rates?

Eric De Groot: Was Gold Manipulated Like Libor Rates? | Gold and What Moves it. | Scoop.it

"Is this a serious question? People believe what they want, so I follow the money and let the masses argue endlessly about something other than trading consistency and profitability. I will say this, as price goes up, shorting by certain interest always goes up. When price goes down, shorting goes down. This money flow pattern has been displayed consistently since 2000 (chart). Coincidence? Think not.

 

"Believe it or not, the latest "coincidence" suggests another up wave has begun. ..."

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Notes From Underground: Three Negatives Can’t Make A Positive

Notes From Underground: Three Negatives Can’t Make A Positive | Gold and What Moves it. | Scoop.it

"... IS the flattening U.S. 2/10 curve a precursor of trouble or merely reflecting the distortion of the TREASURY DEBT MARKET? Historically, flattening curves have portended coming economic slowdowns as investors rushed to lock up longer term rates prior to the economy slowing and the FED lowering rates to soften the effects of a recession.

 

"In today’s world, this is a much more difficult question to answer because of all the problems previously discussed. The FLATTENING CURVE though must be causing Bernanke some sleepless nights as it is impeding BANKS ability to surf the curve for easy profits. Typically, banks would begin looking for other opportunities to lend money, but with bank balance sheets still laboring under stressed real estate loans, very few banks are aggressively seeking riskier loan portfolios.

 

"When the 2/10 U.S. yield curve was 250 basis points, bank balance sheets were being repaired. With the curve presently at 125 basis points there are far fewer opportunities to generate near risk-free returns.,Oh well, there is always the LIBOR market. ..."

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Lie-More As A Business Model

Lie-More As A Business Model | Gold and What Moves it. | Scoop.it
By Simon Johnson.  For more discussion of these issues, listen to NPR’s All Things Considered,

 

"... Mr. Diamond’s fall was spectacular and complete. It was also entirely appropriate.

 

"Dennis Kelleher of Better Markets – a financial reform advocacy group – summarized the situation nicely in an interview with the BBC World Service on Tuesday. The controversy that brought down Mr. Diamond had to do with deliberate and now acknowledged deception by Barclays’ staff with regard to the data they reported for Libor – the London Interbank Offered Rate (with the abbreviation pronounced Lie-Bore). Mr. Kelleher was blunt: the issue in question is “Lie More” not Libor. (See also this post on his blog, making the point that this impacts credit transactions with a face value of at least $800 trillion.) ..."

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The Real Fiscal Cliff | Peter Schiff | Safehaven.com

The Real Fiscal Cliff | Peter Schiff | Safehaven.com | Gold and What Moves it. | Scoop.it

Peter Schiff:

 

"The media is now fixated on an apparently new feature dominating the economic landscape: a "fiscal cliff" from which the United States will fall in January 2013. They see the danger arising from the simultaneous implementation of the $2 trillion in automatic spending cuts (spread over 10 years) agreed to in last year's debt ceiling vote and the expiration of the Bush era tax cuts. The economists to whom most reporters listen warn that the combined impact of reduced government spending and higher taxes will slow the "recovery" and perhaps send the economy back into recession. While there is indeed much to worry about in our economy, this particular cliff is not high on the list.

"Much of the fear stems from the false premise that government spending generates economic growth (for stories of countries experiencing real growth, see our latest newsletter). People tend to forget that the government can only get money from taxing, borrowing, or printing. Nothing the government spends comes for free. Money taxed or borrowed is taken out of the private sector, where it could have been used more productively. Printed money merely creates inflation. So the automatic spending cuts, to the extent they are actually allowed to go into effect, will promote economic growth not prevent it. Even most Republicans fall for the canard that spending can help the economy in general. But even those who don't will surely do everything to avoid the political backlash from citizens on the losing end of any specific cuts. ..."

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Has Hal Gone Crazy? | Captain Hook | Safehaven.com

Has Hal Gone Crazy? | Captain Hook | Safehaven.com | Gold and What Moves it. | Scoop.it

by Captian Hook:

 

"Considering how crazy things in the financial world are getting these days, the above title on that very subject seemed both appropriate, and intriguing. Why intriguing? As some may have already discerned, the title is intriguing is because of the revealing parallel that can be drawn between the behavior of Hal (the too smart for it's own good -- or anybody else's -- computer in the movie) in Kubrick's classic 2001: a Space Odyssey; and the Federal Reserve, which unbeknownst to most these days is submerged it's own brand of 'crazy behavior'. What kind of crazy behavior? After all, it's the Fed -- right? What could they be doing wrong? They take care of the money and economy like Hal was (mistakenly) perceived to take care of Discovery One, don't they? This is the consensus view of the Fed on one level or another.

 

"Well, in the first place, the Fed does not 'take care' of anything except its owners (like Hal was only interested in taking care of itself), via Fed policy, which most wrongly assume is for the good of the economy; but in fact, could not be further from the truth. Why is this the case when their stated objectives are to promote full employment, price stability, and to moderate long-term interest rates? In short, it's because in actuality, and in addition to feeding power hungry egos of its higher ranks, the Fed is in the business of doing one thing and one thing only, that being debasing the currency (dollar[$]) in order to both protect and further the interests of its owners, which is of course completely at odds with the best interests of the economy, populace, etc. (i.e. currency debasement is concealed wealth confiscation.) ..."

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The Perfect Storm - Santelli Meets Farage | ZeroHedge

The undisputed champion of European political ranting (UKIP's Nigel Farage) discussed the sad reality of Europe's inevitable demise with the reigning US chief of non-hype Rick Santelli in a no-holds-barred cage-match of like-minded skeptics.

 

This is a must watch. Hat tip to http://twitter.com/lmgross/statuses/222721966988197888 ;

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Eminent-Domain 'Transfer Of Wealth'-Program Challenges Remain | ZeroHedge

by Tyler Durden:

 

"The debate around San Bernardino County’s proposed program to use eminent domain rights to seize ownership of underwater mortgages has continued to heat up since we first wrote about it here last week. As Barclays notes, the county (along with two other cities in the area) has formed a joint powers authority, which would not need permission from the respective city councils unless they need public money. There are conflicting reports of the path that such an authority would take and the role of private investors. However, the most likely path seems to be that the authority is funded by private investors and it uses this money to buy current loans that are underwater at a "fair price" and then refi the borrower into a new private or more likely into an FHA mortgage. So, this program, if implemented, is likely to be a transfer of wealth from existing investors in these loans to the city governments and the newer investors led by venture-capital firms. ..."

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Expect More Chaos As The Elites Are Now Totally Discredited

Expect More Chaos As The Elites Are Now Totally Discredited | Gold and What Moves it. | Scoop.it

... [Jean-Marie] Eveillard had this to say [to King World News] regarding gold: “It’s been almost a year since gold hit $1,900. Gold suffers from the idea that there is no inflation. In fact there is inflation. The Austrians (economists), and I think they are right, they say inflation is the creation of too much money and too much credit. And that has happened, the creation of too much money and too much credit has happened over the past three years, and it’s continuing. So the policies are inflationary.

 

"I think gold, in spite of the fact that it has been in a bull market for 10 years or more, continues to be under-owned. Gold is still seen as an outlier, as a somewhat bizarre instrument. It’s not seen at all for what it is, which is a substitute currency. ..."

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