Wall Street on Parade read through the Fed’s Annual Report for 2020 and discovered a direct correlation between the Fed’s deployment of large repo operations precedes the onset of a financial crisis.
As such, it becomes easier to see that there was an intentional and deliberate motive to the bombing of gold and silver prices not camouflaged by movements in other markets. It was clear to see that the smashing of gold and silver was quite unique and specific.
More spending is on the way. A LOT MORE. As Rahm Emanuel said during the Great Recession, “You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.”
The Bretton Woods Monetary System was not a Gold Standard, in the purest form, but it was a Gold-Exchange Standard. US political and economic dominance necessitated the dollar being at the center of the system.
The gold price dropped precipitously on Sunday evening, August 8. Or it was smashed down, depending on which headline you read. We look at the data to see what really happened to the price of gold.
Once again it is clear that the BIS remains an active trader of significant volumes of gold swaps on a regular basis. So far there seems to be no definitive sign from its monthly reports that the BIS is reducing..
Before looking at the Sunday evening orchestrated plunge, the key point to remember is that the Friday morning data and how it was digested, was already embodied and reflected in the gold price by 10am on 5 August ...
It has been a very challenging year for precious metals investors, and our struggles may continue a while longer. However, all is not lost and we are not yet doomed to repeat the pattern from 2013-2018.
On top of the structural supply issues you have continued money-printing and borrowing to pay for exorbitant social programs and pandemic relief. Both are inflationary and provide another tailwind for commodities.
