Translation the west is looking at this market very closely now. If/when the Fed eases there will be western buying. The only piece missing now is if the Fed is and there is western buying, Will Asia turn seller?
The answer to that is, highly unlikely before the election. And likely lunacy before the Brick summit.
dont be.. correlations are excuses to do something for these people, not reasons. "they want the gold" means.. correlations dont matter.
correlations imply the dollar is more important and gold is derivative of it... that is simply not true historically, and especially when they want the gold for a specific purpose.
Assuming correlations dictate movement is like gaslighting yourself. Gold is gold. The dollar is the dollar.
to assume golds price is derived by Dollar movements is to assume Gold is controlled by the USD..
absent a real need for Gold.. it will derive much of its price action based on the money it is traded in... but that is because noone wanted the gold itself.. just a representation of the gold.
Will Asia turn seller? Well, maybe some will, but according to the boss (my Asian might as well be wife) Asians buy and don’t sell. They save two basic ways… gold and RE. RE is not looking so good.
IMO, yes. My father told me two things when I got out of school… one, max out your retirement account each year and two, buy a little gold each year. Gold should be the anchor of everyone’s personal finance, regardless of the amount. Exter’s pyramid goes a long way. One more thing, gold and only gold saved my partner’s life when Saigon fell.
I am from the east and I can tell you Asians only sell or mortgage gold when shit hits the stratosphere and not the ceiling. Asian will stop spending, go into survival mode before selling or mortgaging. I know of so many stories where families have mortgaged their gold (not sold) hoping one days to get it back. The poorer ones sell silver. In rich homes every year grand parents gift one gold coin to each grandchild, the mother in law gifts some jewellery of she can, in poorer families it’s silver coins. Something like that. It’s tradition. It’s only sold if say a medical expense comes up or a child has to then west to study or something very big that requires the sale of gold. And for the family when they sell it is very inauspicious and a very sad day.
I just finished listening to the interview with u tom & Eric. Question about what Eric said. From 2009 to 2011 Chinese citizens made way less money and they were buying gold and being told to make a deposit and come back in a few months.
Back then, was the CPC allowing its citizens to purchase gold as freely as they are today? Or were they restricting it some what?
If correlations return, perhaps I will be slightly less confused.
dont be.. correlations are excuses to do something for these people, not reasons. "they want the gold" means.. correlations dont matter.
correlations imply the dollar is more important and gold is derivative of it... that is simply not true historically, and especially when they want the gold for a specific purpose.
Assuming correlations dictate movement is like gaslighting yourself. Gold is gold. The dollar is the dollar.
to assume golds price is derived by Dollar movements is to assume Gold is controlled by the USD..
absent a real need for Gold.. it will derive much of its price action based on the money it is traded in... but that is because noone wanted the gold itself.. just a representation of the gold.
now that has changed
Will Asia turn seller? Well, maybe some will, but according to the boss (my Asian might as well be wife) Asians buy and don’t sell. They save two basic ways… gold and RE. RE is not looking so good.
Thays really it isn’t it..
IMO, yes. My father told me two things when I got out of school… one, max out your retirement account each year and two, buy a little gold each year. Gold should be the anchor of everyone’s personal finance, regardless of the amount. Exter’s pyramid goes a long way. One more thing, gold and only gold saved my partner’s life when Saigon fell.
East Africans - especially Hindus, Jains, Sikhs and Muslims like "The Gold". Wearable wealth. Ethiopians sneer at any jewelry less than 20 karat.
I am from the east and I can tell you Asians only sell or mortgage gold when shit hits the stratosphere and not the ceiling. Asian will stop spending, go into survival mode before selling or mortgaging. I know of so many stories where families have mortgaged their gold (not sold) hoping one days to get it back. The poorer ones sell silver. In rich homes every year grand parents gift one gold coin to each grandchild, the mother in law gifts some jewellery of she can, in poorer families it’s silver coins. Something like that. It’s tradition. It’s only sold if say a medical expense comes up or a child has to then west to study or something very big that requires the sale of gold. And for the family when they sell it is very inauspicious and a very sad day.
I just finished listening to the interview with u tom & Eric. Question about what Eric said. From 2009 to 2011 Chinese citizens made way less money and they were buying gold and being told to make a deposit and come back in a few months.
Back then, was the CPC allowing its citizens to purchase gold as freely as they are today? Or were they restricting it some what?
Boo-yah!!!
Ag isn't looking too shabby itself.