Why are China and Russia still buying bullion?

[MongiIG]

What do Chinese and Russian authorities know about gold that no one else seems to? IGTV’s Jeremy Naylor caught up with Simon Popple from the Brookfield Capital Intelligence report who says that ‘paper’ gold has yet to catch up.

If and when the paper price reflects the demand in bullion, we may be in the sort of pricing that the markets saw in the 1970s.

 

 

 

[skyreach]

GOLD, GOLD, GOLD!!!

Russia and China have been collecting lots of physical gold for a long time.

QE ( EXCESSIVE MONEY PRINTING) destroys the purchasing value of money, and could have caused hyperinflation but it did not. This was, i believe, because of the cheap Chinese products imported that kept prices low or lower. And that commodities then were going down in prices, overall until2021 bottom.

However, IT IS NOT THAT WE DID NOT HAVE HYPERINFLATION. WE DID AND STILL DO. This is in the form of BUBBLE MARKETS (BUBBLE EVERYTHING) THAT EXISTS NOW. Once the bubble burst then other dynamics will play out. Inflation does not measure many things.

Basically, the FED, along with most other central banks ( who use the same misguided practice they have been preached )have made a mess of their economy ( not all ) and the purchasing power of the currency value ( in local value). Central banks have failed to recognise the true factors that if consciously known would handle or improve the economy. MANY TIMES THEY HAVE FAILED, AND THEN GIVEN "SOLUTIONS" THAT DID NOT REALLY RESOLVE  THE DANGEROUS CONDITION.

The economy, when it is working, does so BECAUSE OF MARKET FORCES , NOT BECAUSE OF THE CENTRAL BANKERS ACTIONS.

The key focus on a 2% inflation target they have seems arbitrary. In a genuinely expanding economy you will have, naturally, inflation to move the expansion forward.  YOU ALSO, PRIMARILY, NEED TO HAVE INDUSTRY GROWING ORGANICALLY AND INVESTING IN THEIR BUSINESSES, which in our climate has not been there by many companies. Over indebtedness has hampered their ability in any meaningful and constant expansion. 

THERE ARE A LOT OF ARBITUARIES THAT ARE USED, BIG BUZZ WORDS USED IN A GLIB FASHION THEN WHEN THINGS GO WRONG --- WHY IT IS ALL A BIG SUPPRISE.

IT is at times like this that their THEORY SHOULD HAVE BEEN ADDRESSED TO LOCATE INCORRECT OR FLAWED DATA WITHIN IT, AND NOT CARRY ON USING THE FLAWED THEORY. But human behaviour being what it is, PEOPLE CLING ON TO THEIR TREASURED BELIEFS IN THE FACE OF BEING MADE WRONG. THIS IS A SIMILAR PSYCHOLOGICAL BEHAVIOUR AS IN THE SHARE MARKETS  -- MARKET CRASHES BIG TIME, PEOPLE HOLD ON, HOPING AND HOPING, AND THINGING --- NO, IT WILL COME BACK UP, BUY THE DIPS!!

THE ADAGE "GARBAGE IN, GARBAGE OUT APPLIED IN ANY DISCIPLINE. SO WHAT IS THE "GARBAGE" HERE?

NO DEGREE OF STATUS MAKES YOU ANY WISER. 

 

 

[skyreach]

P.S.  on GOLD ARTICLE!

MONEY IS AN EXCHANGE SYSTEM BACKED BY CONFIDENCE. THAT CONFIDENCE USE TO BE BACKED BY GOLD, WHICH KEPT THE PURCHASING VALUE OF THE CURRENCY RELATIVELY STABLE  --- UNLIKE NOW, WHERE WE HAVE OUTLAWED THE THE GOLD STANDARD THANKS TO THE MISS-GUIDED OF ADVICE OF BANKERS. 

CONFIDENCE CANNOT BE BACKED BY ANY PR FOR THAT IS TOTALLY ARBITUARY AND CAN BE UNRELIABLE.

THIS IS WHY RUSSIA AND CHINA HAVE ACCUMULATED GOLD.  THE WESTERN COUNTRIES CENTRAL BANKS AGREED TO GET RID OF THEIRS OR REDUCE THEIR STOCK PILE. BUT THE SILLY THING IS THEY HAVE OFTEN SOLD IT OFF AT THE LOWER PART OF THE GOLD PRICE CYCLE!!!!!

HOW SILLY IS THAT????  AND COSTLY!