With all the global uncertainty in play the trading range of Gold, which as we detailed a week ago had through Q1 been “vehemently volatile”, is now noticeably narrowing.
While a gold ETF is a convenient way to play the price of gold on the market, you don’t possess any gold. You have paper. And you don’t know for sure that the fund has all the gold either, especially when the fund sees inflows. In such a scenario, there have been difficulties or delays in obtaining physical metal.
Epstein notes the current state of the metals and stock markets, which are experiencing declines amid uncertainty, and mentions the oil price dynamics and the situation in the Strait of Hormuz.
Gold reserves of central banks will increase irrespective of the price rise. France spoofed USA by selling the gold in vaults held in USA and subsequently buying the same quantity in open physical market. Other nations will resort to similar tactic for gold stored in UK vaults and vaults in USA.
Ira Epstein delves into geopolitical tensions affecting the metals markets, including confusion over a two-week ceasefire agreement involving Israel, Lebanon, and Iran, and the implications of potential tariffs on the Strait of Hormuz.
Ancient Rome’s government turned into pirates when their debt went out of control, and the same thing is happening now. Fiat is the money of government ding-a-lings and gold is the money of citizen kings.
Epstein critiques the portrayal of the Iran war situation in the media and underscores the strategic importance of the Strait of Hormuz in this geopolitical tension. Gold is climbing the wall of worry.
This gold price correction creates fuel for the next rally by creating massive fear. Unlike long sideways churns, this is a scary-type correction, it is an A-B-C correction which we have not seen for years. The C-wave washes out the technical traders...
The gold and silver prices are relatively flat on the day, as the world was sitting there waiting to see what happens tomorrow, with US President Donald Trump’s latest imposed deadline to wipe Iran off the face of the earth.
