Central Bank Attitudes to Gold

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GoldInvestments
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Central Bank Attitudes to Gold

Postby GoldInvestments » 06 September 2016

Most of us know the gold story from Egypt, Greece, Rome, and the Enlightenment through history. Most also know the story of central banks with the Bank of England forming in 1694 and the Fed Reserve forming in 1913. But the central bank's attitudes to gold from the Fed's formation till now is a little obscure to say the least. But gold has been part of the evolving nature of financial experiments since those ancient history times.

55dd1cf6c36188e25f8b457f.jpg


Gold has been experimented with early banking with shenanigans such as clipping and loaning out gold supply which many also read and studied about. But gold has given central banks lessons throughout history with the study of behaviour to start to know how much to push the boundaries of revolt and loss of institutions. The Fed knows that confidence in a financial system can go on for longer than many start pounding the table about those very shenanigans we reference and are so frustrated about. But we also know that the importance of gold cannot totally be obfuscated By central banks.

We need to also acknowledge that central banks have realized and acknowledged the ideological importance of gold. Some of the actions of the Fed proving this is their illegal status to own gold for 40 years in the U.S. 1933. Citizens reluctantly had faith in government because the U.S. strength at the time. The citizenry also didn't think much of the ability to once again be able to buy gold from 1974. There was certainly some following for gold by 1979, but by this time it was too late for many and that same many lost their shirts.

Also, gold didn't stop the future Fed chairman Alan Greenspan talking up the value of gold as being a moral agent in society in his 1966 paper on gold. This was a lot to do with his association of the circle - insiders to the Ayn Rand Objectivism elite thinkers. Alan Greenspan was in line to be the intellectual heir to Ayn Rand's philosophy of Objectivism. But Ayn Rand saw through his inconsistent moral nature and seemed to have ignored Greenspan's populist appetite. By 1987 Ayn Rand was right. Greenspan pretty much ignored the value of gold as a check and measure and rolled over to the political pressure of his Fed Chair tenure to continue with the wealth effect of encouraging inflation of assets by depreciating the currency into overdrive.

The reason why we don't have that many table pounders like those reading this is that our living standards are make most feel relaxed about the world. Even though we all know of some of the threats out there. The fact is that risk, war, and collapse talk has been going on for long enough with no fruition to make us say to all 'told you so'. For now the ignorant lucky folk are saying 'told you so' to those which understand the value of gold and the reason it's not $300 per ounce. The appetite for a good ongoing living standard amongst the groaning we always have is keeping gold buyers away, as they are not able to save enough to accumulate gold. Some are saving enough to buy gold and that's commendable.

Organized crime can't buy physical gold anymore from a dealer, but this is where Bitcoin has got into the picture saving this segment of the black economy. For now, central banks are not too concerned for Bitcoin and they see it as a competitor and suppressor of the physical gold. Much in the same way which they perceive the ETFs are doing. The waiting game of a moon shot in gold price and value can go on for longer than most can stay liquid, so beware for the amount of exposure you have in gold this minute. Central banks think they have ages before a major disruption.

So in my final thought, central banks are a bunch of ignorant amateurs in reasoning. But those ignorant PHD economists in central banks have what is required to resist a gold revolt fiat currency. And that is a mandated gun in the form of government. Half of the west relies on government to live via social security now and the other have a standard of living they don't want to lose. So more morphine is going into the patient at this stage until something really hurts. Usually death, of current finance.

And how far the next can is down the road, no one could bare to make a call on that. There are some still without their shirts from the last major gold top of 1980 and we still may get too old before the next gold space launch but we need to be in it to win it. As central banks keep the beach ball under the water longer, the evaporation of the water (currencies) will expose that heavy yellow stuff we call gold (beach ball - and silver of course). In the meantime enjoy the best living standards of all history and keep that gold and silver in the back of your mind, volt, retirement account, and other outlet to access when one needs. Because we never know when the Rome equivalent Barbarians will call the central bank's bluff on finance. Even though central banks do still value gold as the Romans still valued their gold and ideals. But the Roman's can eventually broke up after all that kicking. Ours will too.

by Steve Andelkovic
Funds Manager
Gold and Energy Investments
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Bounty
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Re: Central Bank Attitudes to Gold

Postby Bounty » 11 September 2016

Very nice article.

If world currency defaults and we return to the Gold standard, it will sky rocket ten fold in a couple of days and, another ten fold, by the 7th day! The world banking systems are keeping the true value of gold demand undervalued. China now controls 10% of the planets gold reserve! My opinion, when they call the bank holiday and announce the "compulsory emergency buyback" of gold (or something along those lines), they will crush golds spot price to make everyone panic into selling their gold. When they have all the gold back in they will announce the new "backing" of the US dollar (I believe it will be backed by a basket of commodities, 10% gold, 10%silver 10%etc etc). When the banks reopen, you will see golds spot price somewhere north of $3000 per ounce. imho

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Re: Central Bank Attitudes to Gold

Postby SilverSnake » 25 September 2016

GoldInvestments wrote:Most of us know the gold story from Egypt, Greece, Rome, and the Enlightenment through history. Most also know the story of central banks with the Bank of England forming in 1694 and the Fed Reserve forming in 1913. But the central bank's attitudes to gold from the Fed's formation till now is a little obscure to say the least. But gold has been part of the evolving nature of financial experiments since those ancient history times.

55dd1cf6c36188e25f8b457f.jpg

Gold has been experimented with early banking with shenanigans such as clipping and loaning out gold supply which many also read and studied about. But gold has given central banks lessons throughout history with the study of behaviour to start to know how much to push the boundaries of revolt and loss of institutions. The Fed knows that confidence in a financial system can go on for longer than many start pounding the table about those very shenanigans we reference and are so frustrated about. But we also know that the importance of gold cannot totally be obfuscated By central banks.

We need to also acknowledge that central banks have realized and acknowledged the ideological importance of gold. Some of the actions of the Fed proving this is their illegal status to own gold for 40 years in the U.S. 1933. Citizens reluctantly had faith in government because the U.S. strength at the time. The citizenry also didn't think much of the ability to once again be able to buy gold from 1974. There was certainly some following for gold by 1979, but by this time it was too late for many and that same many lost their shirts.

Also, gold didn't stop the future Fed chairman Alan Greenspan talking up the value of gold as being a moral agent in society in his 1966 paper on gold. This was a lot to do with his association of the circle - insiders to the Ayn Rand Objectivism elite thinkers. Alan Greenspan was in line to be the intellectual heir to Ayn Rand's philosophy of Objectivism. But Ayn Rand saw through his inconsistent moral nature and seemed to have ignored Greenspan's populist appetite. By 1987 Ayn Rand was right. Greenspan pretty much ignored the value of gold as a check and measure and rolled over to the political pressure of his Fed Chair tenure to continue with the wealth effect of encouraging inflation of assets by depreciating the currency into overdrive.

The reason why we don't have that many table pounders like those reading this is that our living standards are make most feel relaxed about the world. Even though we all know of some of the threats out there. The fact is that risk, war, and collapse talk has been going on for long enough with no fruition to make us say to all 'told you so'. For now the ignorant lucky folk are saying 'told you so' to those which understand the value of gold and the reason it's not $300 per ounce. The appetite for a good ongoing living standard amongst the groaning we always have is keeping gold buyers away, as they are not able to save enough to accumulate gold. Some are saving enough to buy gold and that's commendable.

Organized crime can't buy physical gold anymore from a dealer, but this is where Bitcoin has got into the picture saving this segment of the black economy. For now, central banks are not too concerned for Bitcoin and they see it as a competitor and suppressor of the physical gold. Much in the same way which they perceive the ETFs are doing. The waiting game of a moon shot in gold price and value can go on for longer than most can stay liquid, so beware for the amount of exposure you have in gold this minute. Central banks think they have ages before a major disruption.

So in my final thought, central banks are a bunch of ignorant amateurs in reasoning. But those ignorant PHD economists in central banks have what is required to resist a gold revolt fiat currency. And that is a mandated gun in the form of government. Half of the west relies on government to live via social security now and the other have a standard of living they don't want to lose. So more morphine is going into the patient at this stage until something really hurts. Usually death, of current finance.

And how far the next can is down the road, no one could bare to make a call on that. There are some still without their shirts from the last major gold top of 1980 and we still may get too old before the next gold space launch but we need to be in it to win it. As central banks keep the beach ball under the water longer, the evaporation of the water (currencies) will expose that heavy yellow stuff we call gold (beach ball - and silver of course). In the meantime enjoy the best living standards of all history and keep that gold and silver in the back of your mind, volt, retirement account, and other outlet to access when one needs. Because we never know when the Rome equivalent Barbarians will call the central bank's bluff on finance. Even though central banks do still value gold as the Romans still valued their gold and ideals. But the Roman's can eventually broke up after all that kicking. Ours will too.

by Steve Andelkovic
Funds Manager
Gold and Energy Investments


Gold will never de-value, why? Just think about it, you could travel to any country in the world and exchange your gold for their currency. What happens when currencies fail? Everyone goes back to gold. Currencies were fine when they were backed by gold, all that changes when they decided to print money out of thin air backed by oil. Saudi Arabia and other gulf oil producing countries are only allowed to sell their oil in dollars, thus putting confidence in the dollar and making it the world currency. But how long can this game be played? Printing and infinite amount of dollars.

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Re: Central Bank Attitudes to Gold

Postby Silver King » 28 December 2016

I would be more positive on any "central banks buying gold" stories if they weren't the ones who were selling gold at the bottom. They may be wise now, but if they were not in the past...

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Re: Central Bank Attitudes to Gold

Postby MetalsZone » 16 January 2017

Why would anyone want to do business with someone who's business model is based upon deceiving the customer and fraud? How many have their bank account with these enormous banks like Chase? Use their credit card? If that's what they're doing you should wonder who's cash they're using to buy this gold with. Better check how much money there is in FDIC before you believe you're protected from bank failures. Hint... you're not.

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Re: Central Bank Attitudes to Gold

Postby SilverSnake » 11 April 2017

As someone who use to trade Gold everyday for 9 months and studied it diligently. Let me warn you that Gold always drops in price during financial disasters in the U.S. If you look at the price of Gold during the great depression you will see prices of Gold lower or stay the same in value. On top of that now Banks manipulate Gold sending up in price to take out positions and then sending it right back down taking out more positions of traders like you and me. Your best bet is to just spread your investments in actual physical Gold, Silver and possible crypto currencies.


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