GOLD People are rightly amazed that gold buys L
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Posted On: 06/01/2022 7:53:45 PM
Re: wowhappens28 #84158
GOLD
People are rightly amazed that gold buys LESS today than a year ago....but it's pretty simple. CB's use the money they ripped you off of through monetary expansion to buy gold at deflated prices due to the naked paper gold they sold, promising to forcibly buy your gold at even lower prices (after they kill you. I guess).
If I was a miner I would refuse to produce or sell what I had. But most cannot....so using free money to expand production is their only choice. Most on ZH are expecting lower PM prices if the FED starts seriously fighting inflation.....because it means a certain depression...and resulting gold price collapse. But they qyickly add that once the depression starts in earnest the FED will be forced to print at least another $10 trillion to reflate anything. Of course once that happens it's off to the races! Gold will be illegal again or 5,000 an ounce.
The only way out for the parasites is another war or pandemic (a real one or activating the existing vaccines somehow). Demand destruction allows printing without consequences....which they have enjoyed since 2008....but that is over due to some kind of cumulative trigger that has seemingly ended the punchbowl effect. I don't understand what it was...but it could well be the end of bond demand from overseas abd renewed demand for no real estate hard assets
People are rightly amazed that gold buys LESS today than a year ago....but it's pretty simple. CB's use the money they ripped you off of through monetary expansion to buy gold at deflated prices due to the naked paper gold they sold, promising to forcibly buy your gold at even lower prices (after they kill you. I guess).
If I was a miner I would refuse to produce or sell what I had. But most cannot....so using free money to expand production is their only choice. Most on ZH are expecting lower PM prices if the FED starts seriously fighting inflation.....because it means a certain depression...and resulting gold price collapse. But they qyickly add that once the depression starts in earnest the FED will be forced to print at least another $10 trillion to reflate anything. Of course once that happens it's off to the races! Gold will be illegal again or 5,000 an ounce.
The only way out for the parasites is another war or pandemic (a real one or activating the existing vaccines somehow). Demand destruction allows printing without consequences....which they have enjoyed since 2008....but that is over due to some kind of cumulative trigger that has seemingly ended the punchbowl effect. I don't understand what it was...but it could well be the end of bond demand from overseas abd renewed demand for no real estate hard assets
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