At the end of March 2020, we warned our participants about the potential of a crash of the physical gold market. Less than a week later this became a fact. Gold smelters, where gold bars are poured, had to close due to the lockdown. As a result, physical gold was no longer available, exactly at a time when the demand for precious metal exploded. The threat of unprecedented money creation has caused many to fear a new banking crisis and the further erosion of the purchasing power of their savings. And rightly so: in the 90s in Holland, a 'fries with mayonnaise' cost 2 guilders. This week I had to pay 3 euros for it at a snack bar. That is more than six old guilders. The demand for gold is now 100 million ounces per year. The industry 'discovers' only 25 million ounces per year.
At the end of March, we warned our participants about the possibility of a crash of the gold bullion market. Less than a week later this became reality. Gold smelters, where gold bars are poured, had to close due to the lockdown. As a result, no gold bullion could be obtained.
Judy Shelton is an economic adviser to Trump and has now been
nominated by him as a new member of the FED board. The nomination is
remarkable, because Shelton sees a role for gold in the international
Gold has finally shot through the critical barrier of $1,370 to come
within reach of $1,400. This seems to mark an end to a bottoming process
in the gold price that has lasted almost 6 years. It is remarkable that
gold has now broken out in dollars. Gold had already broken out in
almost all other currencies. This too is a sign that we are at the start
of a new upward trend.