Aggressive Chinese futures traders on the Shanghai Futures Exchange are helping to fuel gold’s increasingly explosive rally—and it’s only just beginning.
All banks should be requiered to hold 1-2-4-8% of their "reserves" in Gold to hedge their own currencies, and not their paper money that will not save them.
Also the Miners should hold back some of their production, as First Majestic does..and even mints their own silver, by passing the rigged banks.
This should be a standard on their balance sheets,
Thanks Jesse! It was interesting last week to see big moves overnight (driven by Asian markets?) setting the tone. Makes waking up and checking spot prices very interesting for those of us in the U.S.!
Whilst I agree that Foreign selling of USTs is a factor, the more immediate cause appears to be the collapse of the "Basis trade" by US Hedge funds. That trade was created as a "risk free" trade that would allow the Hedge Funds to buy USTs and fill the gap left as foreign Central Banks dumped USTs in favor of Gold. This is actually a larger problem for Treasury because, with foreign CBs still not buying (but arguably the worst of the selling already done), who is going to buy the huge amounts of issuance needed to finance the ever-enlarging deficits?
Hard to believe western retail investors seem still mainly asleep at the wheel. Did the “barbarous relic” PSYOP work too well?
I know—they're still hyped up with and fully invested in the tech bubble, while missing the most undervalued assets: gold, silver, and miners.
But that's an opportunity for those of us who are well-informed!
Amen, Jesse. Atomic conversion of Silver to Unobtanium can’t be that far away.
Agreed!
All banks should be requiered to hold 1-2-4-8% of their "reserves" in Gold to hedge their own currencies, and not their paper money that will not save them.
Also the Miners should hold back some of their production, as First Majestic does..and even mints their own silver, by passing the rigged banks.
This should be a standard on their balance sheets,
Yes, that would be a tremendous improvement from the current state of affairs.
And I hope more miners hold back some production and realize how criminally undervalued silver really is.
great factual article.
silver is the most undervalued asset on earth. gold second.
however, the national debt is not a mere "$37 trillion". it has
been well north of $200 trillion for years now. you MUST include
the incomprehensible unfunded liabilities. debt is debt. period.
the national debt to GNP ratio is now about 10 to 1, or 1,000%.
this is completely insane. the real GNP is probably about a mere
$20 trillion. this fact alone proves we are headed for a complete
and total collapse very soon.
Thanks, Roger! Yes, I agree with you on that. The $37 trillion is just the tip of the iceberg.
I'm certainly happy to be parked in gold and silver in these times.
As I read the article I envisaged the Titanic heading for the iceberg and the lifeboats laden with gold…
Yes, that's a good metaphor for what's happening! Haha.
Thanks Jesse! It was interesting last week to see big moves overnight (driven by Asian markets?) setting the tone. Makes waking up and checking spot prices very interesting for those of us in the U.S.!
Yes! That's exactly how it was during the $400 run last March and April.
And that's because it was largely driven by the Chinese futures traders I discussed in this piece.
It looks like those guys are making a another appearance!
Whilst I agree that Foreign selling of USTs is a factor, the more immediate cause appears to be the collapse of the "Basis trade" by US Hedge funds. That trade was created as a "risk free" trade that would allow the Hedge Funds to buy USTs and fill the gap left as foreign Central Banks dumped USTs in favor of Gold. This is actually a larger problem for Treasury because, with foreign CBs still not buying (but arguably the worst of the selling already done), who is going to buy the huge amounts of issuance needed to finance the ever-enlarging deficits?
Yes, I agree with you. Add it to the long list of acute risks that are appearing all of a sudden.
Another great article.
I have used these to educate my adult children with others re the difference between real money and currency.
So thanks
If you and Alasdair Macleod ever get together, Jesse, let me know, and I’ll bring the Lagavulin (16). https://x.com/macleodfinance/status/1911894145335177577
Nothing stops this train Jesse!
Thank you! Wow - great job. Yes, I agree gold has much further to go.
I see it ultimately hitting $15,000+ in real terms as the financial reset plays out.