Gold and politics
cohodk
Posts: 18,034 ✭✭✭✭✭
Oftentimes our discussions devolve into political matters, but this article seems to indicate the two are intertwined. Thanks to the moderators to allow some discourse.
“We’ve just seen that there’s massive interest in this market that responds to what our messaging is,” said Ray Griggs of Advantage Gold
Gold Retailers Woo Trump Fans With Appeals to MAGA-Fueled Angst https://www.bloomberg.com/news/articles/2023-03-16/gold-retailers-woo-trump-fans-with-appeals-to-maga-fueled-angst
Excuses are tools of the ignorant
Knowledge is the enemy of fear
1
Comments
IMHO:
The effect of politics on PMs is limited to government spending and government legislation in the areas of banking and finance. The US Treasury also effects PMs with its actions. Any other discussion of government has no place on the forum. The Federal Reserve Bank is not a US government entity, it is owned by US commercial banks. The FED carries great inluence over PM prices.
You can't hit the brakes on the car when you've already driven off a cliff.
IMHO....PM prices are driven in the short to intermediate term by emotions. There are some, perhaps many, who wish to control and manipulate PM prices and human emotions via fear. Pms are a fear trade. And fear is big business.
As the article states, the PM message is adopted wholeheartedly by one side of the aisle and draws crickets from the other. That's quite an indictment of politics.
Knowledge is the enemy of fear
Love the Au HATE the politics. Semper!! RGDS!!!
The whole worlds off its rocker, buy Gold™.
The politics mean squat. A few hundred thousand buyers of 1 or 2 ounces means NOTHING if a SWF or CB or other large holder drop a few hundred tons.
Thousands? Seems there are 10s of millions--in this country alone.
Knowledge is the enemy of fear
If PMs do not have a root in politics, then why does the PM reseller only set up at Republican events and not Democrat? Don't the Dems have more money?
Knowledge is the enemy of fear
I think there are a couple of million, tops. Maybe 10 MM at the upper end.
10 million buyers at 2 ounces per is about 20% of the gold mined per year. That's quite a demand component.
Knowledge is the enemy of fear
But not that many buy. If they did, you'd see those gold infomercials airing much earlier than 4 AM.
My father bought some gold in 1994. Then he bought a coin or two in 2000. Then again about 2015. Maybe 6 coins in total over 30 years. He's the typical non-active buyer/collector. Ask dealers how often they sell to someone they DON'T KNOW -- it's very rare. Most of their active or larger buyers are people they know or buyers they see every few months...years...whatever.
Also, that component has been pretty constant so it is NOT new demand. Plus, you have supply that can hit from central banks or speculators if the price rises.
A bigger source of demand would be from the burgeoning middle class of India and China. India's GDP and national income should double by 2030....if gold merely tracks it you are talking about an extra 30,000,000 ounces of demand, maybe more.
Asia and the NICs....China....South/Central America...maybe Africa....lots of potential demand over the next decade. Will Crypto/BitCoin steal some of the thunder, though.....
Probably because your grass-roots GOP voter is into monetary issues but your grass-roots Dem voter is not.
wow, I could easily answer that but a don't want PM from Heather
It's actually not a political issue, it's a socioeconomic one.
Same reason why infomercials run at 4 AM and not in primetime.
Josh Brown on CNBC was very bullish on gold today.
This link seems to indicate that you're right. And who is overcharging who ? For what ?
https://www.usmint.gov/
Can't know yourself, 'til you get back to Earth
Those shyster frauds are selling hope and hype.