what about pricing oil in gold at a time the USA is believed to have 0 gold thats not owned multiple times over by banks and/or GLD and was the only nation that did not increase their gold holdings in 2022 but sell heavily?
Really don't get the school of thought that doubts US gold holdings but takes Russian and Chinese gold holdings at heart. None of them are externally audited, if you doubt the US claims how do you justify believing the other two. It doesn't make any sense.
disclaimer: I am from and life in Switzerland - to my knowledge the last country to drop the official currency to gold binding.
the difference to me is that China and Russia do their very best to try to hide the real amount of gold purchased (we only know about half to a quarter and even then is well beyond 40000T) while the USA does not even try to hide the fact that they are selling gold left and right (even if not the initial amount was only 8200T) to surpress the gold price on COMEX - in February aloney they borrowed 100T from the BIS on a futile attempt to manipulate the gold price below 2000 USD and that while the COMEX still has 100x as many contracts as there is gold in their vaults for delivery.
the USA has been a net gold exporter since nearly 1971.
this combination and the fact thst anyone but the USA has a reason to own money without counter party risk is what underlies my thinking
it's also not limited to Russia and China - in 2022 all central banks aside of USA were net purchasers of physical money while the BIS called in over 500T of gold leases.
it's important to keep in mind that since 2023-01-01 all gold trade (including comex) is Basel III NSFR compliant so anyone offering a gold contract for sale can be forced to also deliver (before, longs could be settled with the money equivalent as its still the case for silver - but we learnt with the nickel blow up in 2022 at the CME that not even that will safe you when someone can pinpoint the culprit - like BoA with 400B of net short silver contracts to 'offer liquidity to SLV') - this has become a serious Achilles heel for manipulation as European and Asian central banks aggressively buy all contracts below physical gold price and have done all of 2022 as you can see on the official COT report
the USA still seems to believe that hard money is unnecessary as long as their is hard metal they can shoot at everyone around the globe - I am seriously terrified of that as I fear thst 2023/2024 might see global escalation (after using USD as weapon against Russia failed badly) to proof that point.
what about pricing oil in gold at a time the USA is believed to have 0 gold thats not owned multiple times over by banks and/or GLD and was the only nation that did not increase their gold holdings in 2022 but sell heavily?
Really don't get the school of thought that doubts US gold holdings but takes Russian and Chinese gold holdings at heart. None of them are externally audited, if you doubt the US claims how do you justify believing the other two. It doesn't make any sense.
disclaimer: I am from and life in Switzerland - to my knowledge the last country to drop the official currency to gold binding.
the difference to me is that China and Russia do their very best to try to hide the real amount of gold purchased (we only know about half to a quarter and even then is well beyond 40000T) while the USA does not even try to hide the fact that they are selling gold left and right (even if not the initial amount was only 8200T) to surpress the gold price on COMEX - in February aloney they borrowed 100T from the BIS on a futile attempt to manipulate the gold price below 2000 USD and that while the COMEX still has 100x as many contracts as there is gold in their vaults for delivery.
the USA has been a net gold exporter since nearly 1971.
this combination and the fact thst anyone but the USA has a reason to own money without counter party risk is what underlies my thinking
it's also not limited to Russia and China - in 2022 all central banks aside of USA were net purchasers of physical money while the BIS called in over 500T of gold leases.
it's important to keep in mind that since 2023-01-01 all gold trade (including comex) is Basel III NSFR compliant so anyone offering a gold contract for sale can be forced to also deliver (before, longs could be settled with the money equivalent as its still the case for silver - but we learnt with the nickel blow up in 2022 at the CME that not even that will safe you when someone can pinpoint the culprit - like BoA with 400B of net short silver contracts to 'offer liquidity to SLV') - this has become a serious Achilles heel for manipulation as European and Asian central banks aggressively buy all contracts below physical gold price and have done all of 2022 as you can see on the official COT report
the USA still seems to believe that hard money is unnecessary as long as their is hard metal they can shoot at everyone around the globe - I am seriously terrified of that as I fear thst 2023/2024 might see global escalation (after using USD as weapon against Russia failed badly) to proof that point.
Uu
Very thorough analysis. Good job, Dr. Anas.