First, let me write this in the introduction to the article; Price (like most/all markets) is manipulated in various ways. Those methods can be spoken of, for example, they can be subject to paper purchases/sales that are not the same as their market value (depending on the supply/demand dynamics of the physical market), and they can be subject to misleading collective sentiment, both in an upward trend and in a downward trend . All markets are manipulated in one way or another or motivated by mass sentiment. For example, every time the Federal Reserve issues a decision and the market reacts to it, manipulation begins by the well-known definition of the word.
Readers prompted this article by responding to a Twitter note I made on Wednesday to make it clear that if gold’s decline (which it currently has) is an attack of some sort of “league” arrayed against gold, then they should really hate it. However, this notion does not hold because gold is an “anti” of things that copper is a “pro”. In other words, gold is countercyclical, copper is cyclical, and if some “want” gold to go down and “some can be defined here as” (eg, the anti-slip team, the “banking band”, etc.), they would They try to manipulate bull markets, then they also want to keep copper at a positive level, given the stock market’s ‘copper ceiling’ awareness.
Barring that, the gold/copper ratio is back up where we expected it to be as cyclical inflation pressures ease. Therefore, the inflation factors continue to fade compared to gold which is less sensitive to inflation and less volatile with the cycle; This makes perfect sense during the temporary moderation of inflation that we are in.
Among the hilarious and much-needed laugh-out-loud replies, especially from people with whom I have mutual “followers,” was one from someone who seriously begs to differ, a comment out of the ordinary for someone who doesn’t follow me and, therefore, probably doesn’t know my 90% “anti” tendencies. Of the slogans and traditions that come out of the gold society slot.
The part I want to focus on is that gold is “just over doubled in over 40 years”. Yes, and this is why gold is considered a value retention tool rather than a price mechanism. If we have a decades-long bubble in fiat assets as I believe, and if this bubble persists as I believe (which we are at risk of finally showing indicators outside the scope of this article), then the value tool has underperformed the components of the bubble, by conventional definition.
My personal view is that gold strikers who believe in active, distinct and persistent gold price suppression operate with the same mentality as speculators, such as those who operate in stocks and commodities (and bonds, and currencies, and, etc.). They are frustrated that the old anchor of value is not keeping pace with the speculative assets inflated in the “everything” (formerly gold) bubble.
I was asking, “Why does gold have to go along with a bubble, especially if that bubble is in danger of bursting?” It is flagged as a confidence type of bubble-making mechanism that flows cyclically and is flagged down through the greedy and bubble momentum phases. Gold itself does nothing. It’s fixed. So, even if the bubble is intact, gold of course will not hold.
This is my point, therefore, when the “everything bubble” really bursts, the inherent value of gold will be tokenized as the price assigned to it by speculative refugees may be something to note, making some of the proponents of these speculative prices look like geniuses. In many cases decades after the original invites (5000+, 10000+ and beyond).
Meanwhile, those angry about the price of gold relative to more speculative assets are looking in the wrong direction and clinging to conspiracies and excuses. The herd is the herd for a reason. They believe what the leader says and follow the leader. They don’t think for themselves and they don’t use common sense. I do not mean to disparage innocent, well-intentioned conspiracy theorists. I mean to despise conspiracy mongers if for no other reason, for the harm they do to their followers… over and over again.
2023-05-20 11:21:00
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