Just wanted to clarify any confusion that may have been caused...

Just wanted to clarify any confusion that may have been caused by my previous chart....



Just as the GFC hit - the R/E to gold ratio was at ~350 ounces and then it started to fall...

The Govt couldn't afford for the public's main asset to flounder, so it started issuing a lot more bonds... crisis averted...



But, ~5 years later the R/E to Gold Ratio again started falling.... and we all know what happened then ... the big "C" arrived and things were interrupted again.

Once again, the Govt couldn't have things happening in a natural market based manner...so they intervened with all sorts of "stimulus" policies (some of which wasn't needed - eg wage & salary subsidy). This time though, instead of issuing bonds to the market - they dealt directly with the RBNZ by way of more QE Large Scale Asset Purchases. And where did a lot of these funds go...? Correct, inflating the stock & real estate markets.



It's only effect was to delay the inevitable, because at the end of the day - GOLD will have its say, and once again, the R/E to Gold Ratio is not only falling - bit its trajectory appears to be getting steeper. Not even the Govt or the RBNZ can stop what's coming. I wonder whether the RBNZ Governor's (Adrian Orr) sudden resignation has anything to do with him knowing what the inevitable outcome is going to be and didn't want it to be associated with his tenure?

IMVHO, those holding physical gold are soon going to be rewarded for their audacity to give the middle finger to those who think the stuff is outdated and the likes of bitcoin is superior. (I don't see bitcoin as a tier 1 capital asset).

Meantime, I am trying to understand why the RBNZ/NZ Govt prefers to hold USD/EUR/JPY etc when NZ has zero gold holdings...