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Bedrock of the Community
 United States
10497 Posts |
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Can we predict the impact on precious metals, not yet, but instability is not a desirable condition. All I said was "Why worry about thing you can't control?" When the time comes then you can show me some proof - right now it's just opinions! I don't live my life by other peoples opinions. |
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Pillar of the Community
United States
1767 Posts |
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instability is not a desirable condition. One could say we are more stable now than we were before the new year. It is easy to ignore what Chavez and Maduro did to their people and instability to the western world. From a business standpoint, they stole all the foreign investment. We will see. |
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Pillar of the Community
 United States
6493 Posts |
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instability is not a desirable condition. Judging by the overjoyed response of the Venezuelan people, I would say that they much prefer the instability of chaotic new freedom to the drudgery of a stable dictatorship. My armchair prediction is that Venezuela will endure a few bumps along the road before settling into an average situation for Central and South American countries. As the wise man says in Charlie Wilson's War, "We'll see." |
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Pillar of the Community
United States
1767 Posts |
Tracy Shuchart, Ninjatrader Group Sr. Economist reported on Chares Payne's show that there are 2 gold deposits and a copper deposit in Venezuela that Maduro took control of from Gold Reserve Ltd. They are trying to get them back and have fielded many calls from gold miners about the claims. She said these will be easier to get up and running than what it will take for oil companies.
Tracy is a rockstar commodities economist.
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Moderator
United States
188052 Posts |
Very interesting!  |
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Valued Member
United States
312 Posts |
Always much clearer in hindsight that one of main drivers of gold rally was not Venezuela but Iran. Venezuela's future looks brighter with oil, gold and iron. Venezuelan stock market has is up 100% YTD. Iran's currency is now zero.
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Moderator
United States
188052 Posts |
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Always much clearer in hindsight that one of main drivers of gold rally was not Venezuela but Iran... True. |
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Bedrock of the Community
United States
36710 Posts |
What has a bigger effect on world silver and gold prices are the new banking rules in Basel III. Banks can no longer claim paper silver and gold as assets. Only physical metal. That's why so many sorts are being closed out by the big banks. https://dinarchronicles.com/2026/01...lking-about/Edited by IndianGoldEagle
01/13/2026 8:00 pm
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Pillar of the Community
United States
3343 Posts |
Gold is a portable source of wealth for gypsies and tyrants.
IMO the big drivers are Putin and the tariffs. Poland was a major gold buyer last year at 50T. And the tariffs drive countries with export economies to hedge in PM's.
There has been a lot of clamoring for a return to the gold standard. Unfortunately gold is too unstable a commodity to use as a base for currency. Last year CPI was up 2.9%, while gold was up 66%. The price of gold (and silver) are not as stable as the price of every other commodity. We'd be better off pegging our currencies to eggs.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Moderator
United States
188052 Posts |
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There has been a lot of clamoring for a return to the gold standard. Unfortunately gold is too unstable a commodity to use as a base for currency. Then there is the fact that only a fraction of the money supply could be backed with physical gold at its current value. And before you get excited about the value of gold rising to meet the challenge... To fully back the entire U.S. money supply (M2) with the official U.S. gold reserves, the price of gold would need to be revalued to approximately $85,300 per ounce. (via Google Gemini). |
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Pillar of the Community
United States
3343 Posts |
The US was the last country to leave Bretton Woods. If we hadn't France would have emptied our gold reserves by demanding specie for debt payment. After we did the price of gold rose rapidly to 10x its pre 1970 price. There was no way to put the $35/oz gold genie back in its bottle.
I still have a $100 Canadian 1982 gold half ounce coin. At the time it was minted it contained more than $100 in gold. It was made of coin alloy and COULD have circulated at face value, but not for very long before it disappeared into the melt pot. I don't think any of them actually did circulate. Goldbacks have a value which varies with the price of gold, but you can't easily do that with a sovereign coin.
The BRICS countries central banks have been major buyers of PM's but have not tried to roll out a gold-backed currency. India came the closest with their gold sovereign bonds. Unfortunately for them they didn't buy the gold to back the bonds, and are now facing redemptions at today's price of gold. The bondholders are getting rich on their mistake. If they had done this with their currency instead of bonds it would be far worse.
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
Edited by thq
01/14/2026 09:59 am
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Valued Member
United States
312 Posts |
Don't ever forget what happened after Bretton Woods. Yes, gold went up 200x from $35, peaking in the $600s in Jul 1980. What did the central banks decide then? One, they thought this gold is too darn volatile to use as currency and probably two, I better sell before all these other yahoos decide to sell too. And sell they did. They were selling so much there was a real fear they would drive the market back to $35. So get this, all the big players had to agree to selling caps per year lest they all go down the drain.This was the Central Bank Gold Agreement, CGBA. All this selling created the bottom in the mid $200s in year 2000.
The UK and then Treasurer Gordon Brown has the dubious distinction of creating the bottom, known as "Brown's Bottom" at $288 gold.
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Pillar of the Community
United States
6493 Posts |
Analogous to diamonds, just with a banking cartel instead of a mining cartel. =)
Remember folks, it's only collusion when private citizens do it! =P
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Pillar of the Community
United States
1767 Posts |
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Then there is the fact that only a fraction of the money supply could be backed with physical gold at its current value. And before you get excited about the value of gold rising to meet the challenge... To fully back the entire U.S. money supply (M2) with the official U.S. gold reserves, the price of gold would need to be revalued to approximately $85,300 per ounce. (via Google Gemini). And that's if they stop the printers today. Scary! |
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Moderator
United States
188052 Posts |
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Remember folks, it's only collusion when private citizens do it! =P Do as they say, not as they do.  |
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Replies: 24 / Views: 1,552 |
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First Page
Posted 01/05/2026 09:29 am
