GOLD 0.51% $1,391.7 gold futures

"People, especially paper gold traders (who determine the price...

  1. 2,730 Posts.
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    "People, especially paper gold traders (who determine the price in US$) are slowly figuring out that the US$18.5TRILLION of govt debt and global debt is totally unsustainable and cannot go on much longer."

    pete, what evidence is there to support your statement?
    I don't see any past indications that markets have considered the 19 trillion debt a problem. The narrative has always been that the world reserve currency doesn't have to worry about debt because the rest of the world has no choice but to support it.
    Never heard your rationale before.

    I think that markets are unnerved by increasing reports in the MSM that the banks are now facing heightened risk of massive debt defaults and derivatives failure, due to the unfolding world recession. They see now that CBs are impotent. If the banking sector could remain solvent, I have no doubt that the Fed would be able to "muddle along" like the last 8 years. The markets would be dissatisfied with "more of the same" but would have no choice but to live with it.
    But now the smart money knows the banking crash is drawing closer.
    However, I can't for the life of me see the value in paper gold investment because they will not get bullion delivery, they may get bailed-in, and in the event that they are actually paid out, fiat money will likely be massively depreciated in this next crisis.
    23.
 
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