Will the coup in Turkey have a major impact on PM's?
TopographicOceans
Posts: 6,535 ✭✭✭✭
I guess we'll have to wait to see how it plays out and will have to wait until overseas markets open on Sunday. 
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"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Because things will revert back to status quo ante bellum, I expect no effect one way or another regarding PMs.
Here's a warning parable for coin collectors...
Expect no impact on Gold.
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
Gold is being given an increasing role as an alternative reserve currency in addition to the widely-recognized fact that it has no counter-party risk.
The coup will have no direct effect; but it will have a positive longterm effect on gold.
I knew it would happen.
Knowledge is the enemy of fear
Gold will move at a rate commensurate with inflation. Why so many try to read into other causes, reasons and hyperbole to explain relative price appreciation escapes me.
The past sixteen years say otherwise. The other causes, reasons and hyperbole more likely explain relative price appreciation of gold since 2000 in the face of low inflation. One of the biggest causes is the massive money creation effort.
Gold more likely follows money supply inflation, which normally results in price inflation in a market that is free to react to market forces. The fact that it hasn't reacted in a normal manner should tell you the current and recent past state of free market forces.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
No, but this will:
Five Wall Street mega banks hold $231.4 trillion in derivatives or 93 percent of all derivatives in the entire FDIC banking universe of 6,122 banks and savings associations.
The protections of Dodd-Frank against derivative exposure and the need for future taxpayer bailout have been slowly and quietly delayed/removed by these mega bank lobbyists.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Gold will move at a rate commensurate with inflation. Why so many try to read into other causes, reasons and hyperbole to explain relative price appreciation escapes me.
The past sixteen years say otherwise. The other causes, reasons and hyperbole more likely explain relative price appreciation of gold since 2000 in the face of low inflation. One of the biggest causes is the massive money creation effort.
Gold more likely follows money supply inflation, which normally results in price inflation in a market that is free to react to market forces. The fact that it hasn't reacted in a normal manner should tell you the current and recent past state of free market forces.
What do the last 30 or 50 or 100 years say?
Gold and silver are 5x higher than 15 years ago. Seems they have done exactly as you wish to demonstrate with your chart.
Knowledge is the enemy of fear
Gold will move at a rate commensurate with inflation. Why so many try to read into other causes, reasons and hyperbole to explain relative price appreciation escapes me.
The past sixteen years say otherwise. The other causes, reasons and hyperbole more likely explain relative price appreciation of gold since 2000 in the face of low inflation. One of the biggest causes is the massive money creation effort.
Gold more likely follows money supply inflation, which normally results in price inflation in a market that is free to react to market forces. The fact that it hasn't reacted in a normal manner should tell you the current and recent past state of free market forces.
What do the last 30 or 50 or 100 years say?
when compared to the last 15 years, that central banks need to stay out of the markets. Central banks have demonstrated they are actually gold's best friend and fiat money's biggest threat.
What does the chart say for those that chose to accumulate gold? The chart clearly demonstrates that beginning in 2000 gold became more than a store of wealth that protected against inflation - it became a money maker, even under the influence of central bank attacks. Imagine the gold price if it weren't a threat to investment in government debt and was allowed to react to actual fundamentals. This will eventually become a reality.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
"Will the coup in Turkey have a major impact on PM's?"
No, but this will:
Five Wall Street mega banks hold $231.4 trillion in derivatives or 93 percent of all derivatives in the entire FDIC banking universe of 6,122 banks and savings associations.
The protections of Dodd-Frank against derivative exposure and the need for future taxpayer bailout have been slowly and quietly delayed/removed by these mega bank lobbyists.
Perhaps the banks can protect themselves by creating a new financial instrument, "Securitized Holdings Avoiding Financial Transparency."
My Adolph A. Weinman signature
Gold will move at a rate commensurate with inflation. Why so many try to read into other causes, reasons and hyperbole to explain relative price appreciation escapes me.
The past sixteen years say otherwise. The other causes, reasons and hyperbole more likely explain relative price appreciation of gold since 2000 in the face of low inflation. One of the biggest causes is the massive money creation effort.
Gold more likely follows money supply inflation, which normally results in price inflation in a market that is free to react to market forces. The fact that it hasn't reacted in a normal manner should tell you the current and recent past state of free market forces.
What do the last 30 or 50 or 100 years say?
when compared to the last 15 years, that central banks need to stay out of the markets. Central banks have demonstrated they are actually gold's best friend and fiat money's biggest threat.
What does the chart say for those that chose to accumulate gold? The chart clearly demonstrates that beginning in 2000 gold became more than a store of wealth that protected against inflation - it became a money maker, even under the influence of central bank attacks. Imagine the gold price if it weren't a threat to investment in government debt and was allowed to react to actual fundamentals. This will eventually become a reality.
Why is it always something "attacking" gold price? It really makes your arguments sound stupid.
How about something akin to gold dramatically underperformed every asset class for 20 years preceeding 2000 and now it is finally catching up as investors see/saw relative valuation opportunity.
And back to the chart....the inflation number shows year over year change while the gold price should compounded change. What a deliberate attempt to mislead. Pity the fools who can't see this as they are being manipulated.
Knowledge is the enemy of fear
The chart doesn't show monetary inflation either. Or derivatives. Or debt of any sort.
Concerning inflation and misleading, having the government self-report about inflation is akin to the Ministry of Truth in 1984.
I knew it would happen.
And back to the chart....the inflation number shows year over year change while the gold price should compounded change. What a deliberate attempt to mislead. Pity the fools who can't see this as they are being manipulated.
Chart clearly shows an increase in gold prices in the face of steady to declining rate of inflation over the last 15 years. It debunks your earlier statement that inflation determines the price of gold. It shows that gold is now much more than just a hedge against inflation thanks to central bank intervention.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
But what I find more interesting is that those who touted so strongly in recent years that there is inflation are now saying there is hasn't been.
This whole investing concept really isn't all that complicated. And it becomes quite easy once fear and mistrust are removed and rational, logical thought becomes dominant.
Knowledge is the enemy of fear
A declining rate of inflation does not mean there is no inflation. And given that gold did not respond to inflation from 1980 to 2000 shows that it ismt a very timely inflation asset.
But what I find more interesting is that those who touted so strongly in recent years that there is inflation are now saying there is hasn't been.
This whole investing concept really isn't all that complicated. And it becomes quite easy once fear and mistrust are removed and rational, logical thought becomes dominant.
you said "Gold will move at a rate commensurate with inflation."
I showed that it hasn't and most likely will not until central bank intervention subsides.
Before you get too dominant with your logical thought, make sure it is based on fact.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Gold will reflect the cumulative effects of inflation over time, but not day by day or even year over year, just as all other assets do.
Knowledge is the enemy of fear
Knowledge is the enemy of fear
I think I certainly have shown that gold has moved with inflation. Compare the price of gold with the price of other assets over the last 30, 50, 100 years and you will see similar performance.
Gold will reflect the cumulative effects of inflation over time, but not day by day or even year over year, just as all other assets do.
and I have shown that 30, 50, 100 years ago are no longer relevant now that our central bank has taken on a whole new approach to mismanaging the economy. Chart for last 16 years paints the picture.
Yes, inflation (devaluation of the currency) will affect price direction of most all assets. It will not however be the driver of the price of gold. Again, chart for last 15 years shows this. Driver of gold price will be it's perception as a safehaven while Rome burns.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I would like to see a chart showing the COST vs. price of getting gold to the marketplace......, bringing and ounce to market over the last 100 years....