Gold is global.Originally Posted by sonatine
nod i saw that tweet. there appear to be two camps;
1) people who look at things and say 'everything is going to get much much worse and therefor gold will continue to rise'
2) people who believe the auction is changing and people are selling into mania
i have no dog in this race but i gotta say, ive seen #2 happen a lot more than ive seen #1.
There is now more gold in central bank reserves than US Treasuries. Is that things getting “worse” for other countries?
It’s not worse - it’s a change of structure. The dollar is still the primary reserve currency but gold is the primary reserve asset.
If gold went to $20,000 how would those sovereign reserves feel about that? For us, that would be a straight $5 trillion creation. Now the US can buy down debt. Debt to GDP would look groovier.
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