RE:RE:RE:There’s absolutely nothing to discourage me
I'm not discounting monetary policy entirely, I agree the asset inflation caused by massive liquidity (and government spending) in the past 12 years is coming home to roost as well.
And my view of the world, faced with a deflationary debt collapse or inflation the politicians will always choose to debase their currency and expropriate their borrowings by inflating ... thus gold shines in the end, I agree.
Little story in the mining world about "mystery whales" buying bullion. My take is the new axis of conflict has the Saudis, Chinese, Indians, Russians and a few of the sleazier neutrals dumping dollars for bullion as fast as they can. The embargoes and freezes on foreign exchange transactions imposed on Russia is chilling foreign currency markets.
"Central banks bought 399 tons of bullion in the third quarter, almost double the previous record, according to the World Gold Council. Just under a quarter went to publicly identified institutions, stoking speculation about mystery buyers.
While most central banks inform the International Monetary Fund when they buy gold to supplement their foreign exchange coffers, others are more secretive. Few have the capacity to undertake the third-quarter buying spree, enough to soften the blow from investors selling bullion as the Federal Reserve hiked interest rates.
“With that weight of selling, I was a bit surprised gold wasn’t weaker,” said Ross Norman, chief executive officer of Metals Daily, an information portal focusing on precious metals. “But I suppose now we have our answer.”
The WGC, a lobby group for the mining industry, uses data from consultancy Metals Focus Ltd. to produce its estimates. It in turn relies on a combination of public data, trade statistics and field research to provide figures for demand from different sectors of the gold market.
While it’s difficult to identify the gold market whales, only some central banks have the capacity for such purchases."
Good discussion ... economics is part voodoo and the psychology of mass thought, the madness of crowds etc.,. Human folly in a perpetual tug of war between fear and greed?
cg