Roled Gold

The increase in gold demand seen over 2020 has not juxtaposed with post-Covid’s recovering economies, as China and India hold first and second place in global demand for 2021 (1), and where even the once skeptical are turning to gold’s safe haven amidst the bungling US economic recovery (2).

Along with the recent resurgence in gold comes a shift in governmental policies (3) and gold market regulations which offer a value-based monetary option to rival fiat currencies (4). These and other policy changes, such as the Basel 3 regulation (5), indicates a likely shift in gold’s prices as its role morphs from that of arbitrage and unallocated derivative trading to a price discovery based commodity.

The potential ramifications of the Basel 3 regulation is a collapse in the forward settlement market, giving gold the opportunity to achieve its full price potential unencumbered by the manipulation (6), deception (7), and price suppression by the LBMA and the connected bouillon banks, effectively giving physical markets —or, as the dominant holder of physical gold, China— the pricing power (8).

 

References

  1. Gold Demand Continues to Surge in China and India

  2. Market Weekly: The Pivot to Gold Has Begun

  3. Arkansas Ends Sales Taxes on Gold and Silver; Additional States May Soon Follow

  4. Tennessee Will Explore The Possibility Of A State Gold Depository

  5. Basel III & The New Role For Gold

  6. The End Of Paper Gold & Silver Markets

  7. LBMA Misleads Silver Market With False Claims About Record Silver Stocks

  8. Macleod: The End Of The LBMA Is Nigh


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