Wednesday , 17 April 2024

A Very Strong Rise In the Price of Physical Gold is Assured – Here's Why

It is very difficult to see any factor that could stop a continued very strong rise of the physical gold price…[due to] two main drivers…[as mentioned below. Let me explain.] Words: 444

So says Egon von Greyerz ( in edited excerpts from his post* under the title Greyerz – Two Absolutely Incredible & Key Gold Charts. (I have been advised that the inclusion of the 2 charts mentioned in the original article must not be included here, as was done in the original posting which has since been deleted, because such would be considered copyright infringement, so please click the link above for access to the 2 charts.

  Lorimer Wilson, editor of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.

Greyerz goes on to say, in part:

1. Central Banks worldwide are refusing to have public audits of their gold holdings. In addition, many of the Central Banks don’t hold their gold in their home country… [but, instead,] in London or New York…[because] the gold has either been sold or leased to the bullion banks in order to depress the price. (I have been saying for years that Western Governments are unlikely to hold anywhere near the 23,000 tons that they officially hold.)

There is now more pressure in many countries for a full audit of gold holdings. Once the market realises that central banks don’t hold  the gold they officially declare, there will be a total mistrust in the system. At that point very few will trust paper gold or even gold within the banking system which could be encumbered and owned by a central bank. This will have  major upward pressure on the gold price.

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The…balance sheet of the Fed and the balance sheets of all of the central banks in the world compared to the gold price…must continue to expand because without that we will have a total collapse of the financial system. Bernanke knows that, and all of the central bank leaders know that, so that will continue and…borrowings will continue, balance sheets will expand and the gold price will just continue to reflect that. This is without the market reacting to the fact that there probably isn’t anywhere near the central bank gold (governments claim they possess).

2. Government deficits spending and borrowings will continue to grow dramatically, worldwide, in the next few years. No government can or will introduce austerity measures because:

  1. any party suggesting austerity will be thrown out and
  2. the problem is now so big that an austerity program would have zero effect.

The… U.S. public debt to gold price (starting) from 1900…has started to go exponential. Both…government borrowings in the USA and worldwide have now entered a parabolic phase…The gold price is closely following the growth of debt so as the deficits accelerate in the next few years, so will the physical gold price.

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In conclusion, it is very difficult to see any factor that could stop a continued very strong rise of the physical gold price.


Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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