On net, global central bank gold reserves increased by 19 tons in February with some selling pushing down that total. It was the ninth straight month of net central bank gold buying.
By 2025, a massive shortfall will emerge for copper, which is now one of the world’s most critical metal due to its essential role in the green economy.
The Federal Reserve and U.S. Treasury would not have been letting the gold and silver prices rise so sharply over the last few weeks if they still had control over the markets.
Faber says, "Until 1971, the gold price was at $35 an ounce now it's over 2,300...gold has proven what it is supposed to be: namely a store of value, which is true money. Paper money is not true money, but gold is true money."
The Fed failed so severely that they experienced the first loss in their existence and then panned it off to the US government, as is the option built into their charter for a time such as this.
A critical question is how do we get as much buying power as possible from the beginning of the crisis through to the other side? By investing in specific parts of America.
Market participants in both stocks and gold would likely see any inaction or hesitancy by the Fed regarding interest rate cuts as negative for their investment outcomes and expectations.
It wouldn’t be totally crazy to suggest that the market participants are waking up to the fact that there is some serious misalignment in the global economy. This is resulting in an increased demand for gold.
