The world is rushing towards mass insolvency. If we don’t change course, we face certain devastation.
The curious thing is that the price fell while open interest in futures rose, which is not typical of how the market has actually been behaving in recent years.
The unadulterated gold standard is a free market in money, credit, interest, and discount based on the right of the people to hold and use gold coins, and which includes Real Bills and bonds.
The whole situation mirrors the late 1960s, during a period that led up to the «Nixon Shock.»
I suspect the reason for repatriating the gold has more to do with a shift in German politics than any sudden questions about the faith and credit of a central bank, or any desire to re-monetize gold in Germany.
The repatriation of even a part of Germany’s central bank gold holdings should be regarded with concern.
The world needs the unadulterated gold standard.
In light of today’s Fed decision…
Gold is increasingly valued as a reserve asset, which will tend to push the price up, independently of all other factors.
Reports have recently been released that throw particular light on the degree to which central banks around the world are accumulating gold.
It is well known that some countries keep considerable portions of their gold reserves with the U.S. Fed and with the Bank of England. But the details are lacking.
While some continue to argue that the US can only get its fiscal house in order by running trade and/or budget surpluses, it would seem the US’s official gold stock could be revalued to the extent that no trade or budget surplus is necessary as any sort of precondition.