TD on Gold: How The Dollar Dies
"The West is losing control over commodity pricing mechanisms"- Daniel Ghali
While reviewing a Gold report by TD Bank last night the opening line (subtitle of this post) was much bigger picture and of secular importance than the Gold market on which it was supposed to be reporting. It was kind of shocking to see that in a macro Gold report frankly. It went on to say:
This [the West’s loss of control over commodity pricing] is a slowburning theme with significant implications for pricing, inflation, currencies and geopolitics over the coming decade.
We could not agree more.
After that first paragraph the report went back to assessing Gold prices given the backdrop of the current banking crisis. That first paragraph was very important however. It is what will drive prices for years. It is why you will buy the dip in commodities going forward.
It describes secular changes now serving as tailwinds for the pricing of Gold, Silver, and commodities in general. That paragraph is about the demise of the Dollar as the sole global reserve currency.
It is also reminding us about a world physically divided and how that division will manifest in the food we eat, the cars we drive, and the prices we pay; something we have discussed here several times.
SECULAR TRENDS ARE NOW MACRO TRENDS
Why bring this up today? Macro analysts are picking up on it. That means it is on their radar and what is slowburning to them, is heating up from where we sit.
What these analysts, (Hartnett and Daniel Ghali today) are noting is the dollar’s troubled status due to commodity demand and thus pricing power moving eastward.
Starting with the Ukraine war (Covid actually) our world divided with the East taking its commodity collateral back while the West took its Finances back . That was the beginning of global monetary multipolarity.
THESIS: HOW THE DOLLAR DIES
Those concepts, if they interest you, were most recently discussed with Tom Luongo in detail on his podcast a couple weeks ago. Podcast Episode #135 – Vince Lanci and How We Return to Gold-Backed Money
Here is the actual path to the end of dollar dominance in practical terms as laid out in that podcast and here in 4 clear steps. This is happening right now for all world to see, if they would only look
MORE BELOW, PLUS THE LATEST GOLD REPORT AND GS TRADER COMMENT