Billionaire hedge fund manager George Soros, on how to make money, famously said - "Find a widely held precept that is wrong and bet against it". On Tuesday Jim Rickards tweeted “#Gold is plunging because China has less than expected, & Fed is raising rates. Except that China lied and Fed can't raise rates. Go figure.”. These 2 quotes fit nicely for those that understand. We are in the middle of a central bank induced (printed money and ultra low interest rates) asset bubble with weak fundamental support (low GDP growth, financial instability) whilst carrying and rampantly adding unsustainable debt. There are no end of mainstream press commentaries about gold falling out of favour. In the Wall Street Journal in the weekend there was an article describing gold as “like a pet rock” and owning it as an “act of faith”. The annotated chart below (courtesy of ZeroHedge) revisits the timing of a similar article from 1999 in the New York Times. In essence the choice and faith equation is very simple. You can trust that central banks (the US Fed has been around for just over a century – but only 42 years without gold backing the currency) can steer us out of a situation they created by continually creating more credit / Fiat currency - OR – you can trust 5000 years of history of gold being the only real money, money that we humans revert to every time the credit experiment goes wrong. Soros’s quote may not be more relevant than it is right now.
Since you are a bullion dealer, this post should be considered nothing more than a commercial. There are many issues with this post but we will just deal with two today. Anything to back up your statement that the Chinese lied with their statement of their Gold holdings???? Sounds like it is just Bullion pumper drivel to me, nothing to back it up at all, but somehow stackers "just know". While we cannot know for sure, it is much more likely they are being truthful, since that would be in their best interest as they wish to elevate the Yuan to the fifth reserve currency. The second part of the Fed not being able to raise rates is completely false. They can and they will. This is the exact same rhetoric we heard about the Fed not being able to end QE or the stock market would crash for sure and the FED would be forced to print money again. Well, QE ended, and the stock market rose to record highs. Just another of many inaccuracies, false predictions, etc perpetuated by the Bullion pumpers to separate good folks from their fiat. Which brings me to another point, if Gold is so wonderful, why are you so willing to trade it for other people's Fiat????
