Don't feel bad if you can't. Take what you can from it and put it to use. We've have written extensively about central banks having shot their wad and are now impotent despite what anyone tries to tell you, especially MSM. This is not about our being correct. It's about your protecting yourself from the coming economic chaos.
The bad news is that, on present “steady-as-she goes” monthly gold accruals, it will take China and Russia — No. 6 and 7 in the world ranking of global gold reserves — about six years to draw level with the fourth- and fifth-placed countries, France and Italy.
Beijing and Moscow are building up gold stocks for a variety of reasons, ranging from unease about undue dependence on the dollar BUXX, +0.10% — particularly acute in Russia’s case, in view of U.S.-led sanctions over the invasion of Crimea — to distaste at the low or negative returns on Europe currency holdings, especially the euro.
marketwatch.com/story/why-china-and-russia-are-buying-so-much-gold-2016-08-01.
The author left out one of the most important reasons they've been buying gold, maybe by default or maybe on purpose, to hedge against the end of the dollar as the instrument of international trade and the rise of a basket of currencies with gold in it. So now back to the quiz. Name a currency in 2016 that has appreciated against gold? Chart below from: marketslant.com.
No comments:
Post a Comment