Gold and politics
RedneckHB
Posts: 19,491 ✭✭✭✭✭
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
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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.
Capital investment depends on confidence. - Martin Armstrong
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™.
BOOMIN!™
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/
Those shyster frauds are selling hope and hype.
Gold price is determined by "confidence" in the fiat currency it is priced in. Much of that confidence is dependent on the actions of politicians (spending, sanctions, etc.) as well as those who set our economic direction and appoint those who set our economic direction.
The world has witnessed the weaponization of the dollar to punish or sanction a country's behavior with many other countries and central banks wondering if their dollar holdings will be in jeopardy. Additionally, they are finding no solace in trading their valuable commodities for paper assets which are continually depreciating in value. This lack of confidence and the growing fear of holding dollars has led many countries to look for an alternative and many are starting to trade directly among themselves, accepting each other's currencies without using the long revered "petrodollar." For example, the Gulf Council states now accept Chinese yuan in payment for oil. Also, Russia and India now trading among themselves using rupees and rubles.
Furthermore, BRICS countries are suggesting they are working on this issue and that, in the upcoming BRICS Summit on August 22-24 to be held in South Africa, they will be making announcements regarding their progress. Plenty of proof that the dollar's role as a worldwide reserve currency is slowly dying. Look for this to gain momentum. This will require future US debt to be bought more by Americans and most importantly by the Federal Reserve, who currently holds $6T in public debt. The dying petrodollar is no longer a conspiracy theory, it has evolved into a conspiracy fact.
At home inflation is destroying Americans' confidence in the future value of the dollar. Got gold? LOL
And I join the OP in thanking our host for tolerating some leeway in our PM discussions.
Capital investment depends on confidence. - Martin Armstrong
Which liar are you gonna believe ? Go long on gold in silence.
It has never been politics that wooed me
Gold ? Sure enough.
Want this or a 3 dollar bill ?
PMs have a root in common sense, and hard labor. Despite who has money ," it "doesn't make them any more intelligent.
PMs have root in Austrian economics. One party leans Austrian (real money), the other leans Keynsian (fiat money).
Capital investment depends on confidence. - Martin Armstrong
PMs have a deeper root in religion than in politics. It's long been a form of payment, but silver ( measured in shekels in the old book) , more so than gold. And nobody was ever pushing it , from any side. Why? Well it's always satisfied debtors. Need credit ? Got gold ? Who needs credit ?
Could it be, that some get it and some don't, on all sides ?
If you have enough for today, do you have enough ?
Crickets ? Some needn't say.
I think those who report have no clue who buys what or which side they take. Money is money. Silver and gold are money.
Took ahwile but we finally agree. SMPR! RDGS!!!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
I didn't know I could buy PMs at Republican events. How do I find one and how are their prices.
Capital investment depends on confidence. - Martin Armstrong
Jim Rickards - "the financial and political worlds are becoming more closely intertwined to the point that it's almost impossible to treat them separately."
Capital investment depends on confidence. - Martin Armstrong
Blitzdude - "The Bafoons and the Bunker Dwellers have become so misinformed that it's impossible for them to grasp simple tasks such as reality."
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Inflation is back down to 3-4%. Anybody hoping for a re-run of the late-1970's is living for Fool's Gold (pun intended).
Buy gold coins because you like their designs and they might double or triple in 10-12 years. But don't count on it.
updated:
gold to silver ratio still screaming that silver is extremely undervalued relative to gold.
Capital investment depends on confidence. - Martin Armstrong
Your chart is a bit outdated. Gold to gutter ratio was 114+ back in April 2020. It's 82 right now. Certainly not the highest ratio in the past 27 years. THKS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
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.
You didn't mention the greed factor, which I would argue is as important in metals as it is in most other markets. I'm not 100% convinced that there's a correlation between metals and political affiliation. The correlation seems more to be between the pm marketers and political affiliation than it is between pm investors and political affiliation.
IMHO, the real correlation is a negative one, that between the value of inflated dollars vs precious metals - which reflects directly back onto the politics of profligate federal spending.
Those shyster frauds are selling hope and hype.
You're talking about the bankers, right??
That's quite an indictment of politics.
Oh heck, I can think of alot much better indictments than that one!
Blitzdude - "The Bafoons and the Bunker Dwellers have become so misinformed that it's impossible for them to grasp simple tasks such as reality."
Another message from outer space but from somewhere in this solar system?
Inflation is back down to 3-4%. Anybody hoping for a re-run of the late-1970's is living for Fool's Gold (pun intended).
Buy gold coins because you like their designs and they might double or triple in 10-12 years. But don't count on it.
You do realize, don't you - that Congress eliminated any notion of a cap on their spending orgasm while in the process of passing the most recent $1.5 Trillion spending bill?
All while 61% of working families are living paycheck to paycheck and don't have $400 saved for an emergency. Where'd all that newly-created money go? Any guesses?
gold to silver ratio highest it's been in 27 years. Screaming that silver is extremely undervalued relative to gold.
I bought some more 90% silver at the show in St. Louis last weekend. I just had to rescue some more of my purchasing power so I threw some more dollar-denominated paper fiat back into the "economy". They are trying to make cash into a liability anyway. Bizzarro World - debt is money and cash is a liability. Go figure. Got metals?
Tangible, or Not Tangible - that is the Question.
I knew it would happen.
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
What is a "Bafoon" ?
PS:
If you look around and don't know who the real buffoon is, then you are it.
Long term trend of gold has been up regardless of the political milieu imho.