by John Ward
This isn’t the sort of banner headline one normally gets in the largely brain-challenged French tabloid La Dépeche….and never on a Sunday.
Even odder is the suggestion that hard-pushed French consumers should sell their gold jewellery etc to dealers, who are just gagging to give them top dollar given the shiney stuff’s solid performance over the last fortnight.
Financial advice on a Sunday? In a French tabloid? Er, right.
Except no, it isn’t: something odd is afoot. In world terms, France is near the top of the Premiership when it comes to gold holdings – ahead of Germany, China, the US and the IMF. Yet here is one of its most docile mouthpieces virtually suggesting that privately held gold articles should be sold into the market.
It’s pretty obvious to me that the Enarques want la Patrie to have all the gold it can get. They’re not daft: they know that the EU Covid19 Marshall Plan is a peashooter trying to divert a lump of economic concrete before it sinks to the bottom of the Swamp.
This little capture below is also very unsual:
At a time when you’d think any Central Bank would like gold to stay cheap and be busy rigging the markets to that effect, Google today was unremittingly bullish about Gold, pointing out that bulls were, indeed, largely the central banks themselves – and senior market institutions going long in the precious metal – that is, holding rather than profit-taking.
But then you look at the market dailies….
….and you see the usual scenario – Asia takes the price to 1944, Europe opens and knocks it down to 1933, market demand fights back to 1942, New York opens to depress it to 1937, market demand takes it back to 1943. Net net, however, it’s a 2% rise. If it carries on this rate, Gold will be at $2,100+ by the weekend.
It all looks like conflicting signals and a WTF conclusion. Except, I don’t think that’s right.
First up, we must all remember that the share-owning democracy trumpeted across the West by the Blue Meanies from the late 1980s onwards never happened. What we’re seeing here represents the machinations of the top 10% – that is, the 3% who run everything, and the 7% who make an obese living serving them.
I have contacts in the Gold sector for two reasons: as a bloke on a fixed income these days, Gold is by far the best, low-risk way to keep my SIPP’s pecker up; and I have always found that – if you look hard enough – the manipulation of gold prices offers reliable clues about what the sociopaths might do next.
Second, obey the golden rule about 21st century sovereign governance: it is based on a not half bad belief that most people are ignorant, material and human. They are thus primarily motivated by greed and fear.
In any sting, fear of missing the boat breeds greed – and drags them in the direction of the clinically-delivered uppercut. Once penury has been delivered, fear of starvation then keeps them in line.
Third, whatever the business-as-usual serfs in the MSM tell you, what we’ve been putting up with since 2008 in the laughably termed ‘financial capital markets’ is not a New Normal, nor it is capitalism.
In order to take it to the next stage, at some point very soon there will have to be a reset when it comes to all forms of debt, asset valuation, commodity prices, and sovereign debt yields.
And last but by no means least, keeping control of that narrative (to ensure belief in falsehood) and action against the increasingly anarchic multi-branded Left (to restore ‘Order’) is going to lead to increasingly anti-libertarian actions at the insistence of the spreading Intelligence/Surveillance community.
We are, I think, at the beginning of a subtle segue into the sucker punch.
Long holders of gold (central banks, large insurance institutions, Hedge funds and bourse-banking firms) are going to do very nicely thank you out of a medium-term gold boom.
But then the Powers that Be will march in and move more quickly to depress the price – to take “official” control of it – as part and parcel of the reset.
Fear will cause wild selling….and a rush into those corporate and commodity bargains the boom created in the first place. The sovereign banks, meanwhile, will hoover up gold at a knock-down price – until between them they enjoy a near monopoly in that metal.
Their hope, I suspect, is that a return to the stock markets will then act as the stimulus for some kind of recovery. I think they’re wrong, but we’ll see.
For myself, I am a long-term holder of gold with relatively limited objectives. Once I’ve doubled my money, I’ll be out: I require only a living wage rather than riches beyond the dreams of avarice.
What you do is as always up to you: I don’t have the bum-advice assurance the big players have, and the Law thus requires me to remind you my sole opinion is only that – a viewpoint. It doesn’t represent any recommendation.