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 Replies: 24 / Views: 2,288 |
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Pillar of the Community
United States
3343 Posts |
I think it could work as a domestic currency Brandmeister. But it BRICS really wants to compete internationally with the dollar and euro the gold backing would be drained out of their system quickly. France was doing that to the US in the late 1960's, demanding physical gold in payments. There wasn't enough gold to do that for very long. The Gold Standard only works when there isn't predatory behavior that tears the system apart.
India's domestic gold bonds back the Rupee to some extent, but the scale is tiny compared to Treasuries. Billions vs trillions. India is finding that building their gold reserve is expensive and time consuming. Their gold reserves are small compared to the US, China and Russia, and they aren't building them at $32 an ounce or by mining. Personally I like what they're doing to my holdings, but it's unlikely that they will succeed in their quest for gold-backed currency.
What hurts gold the most is that it can't be leveraged like fiat currencies. You can't create more of it out of nothing. A Gold bond or note has to be backed by gold, not by "full faith and credit".
"Two minutes ago I would have sold my chances for a tired dime." Fred Astaire
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Valued Member
 United States
312 Posts |
The cup and handle looks massive and the breakout started just this year.
You'd think India would have hedged all their risk with their gold bond issues but this is government we are talking about.
Gold backed currencies can't get out of the gate because they can't even get past the first and simplest step. No country would ever voluntarily prove their gold reserves for everyone to see. Who goes first?
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Pillar of the Community
United States
2843 Posts |
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The cup and handle looks massive and the breakout started just this year.  Yep, exactly what it looks like to me. |
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Pillar of the Community
United States
2843 Posts |
Also to note.... the $SLV broke out above $30 to new 52 week highs ($31.80), stair stepping up since Aug. Earlier in the year, I was wondering if silver would hit $35 before years end & it did or at least came within cents. With golds bull run, I'm now thinking silver to $40 is a possibility prior to year end & ATH's in '25.
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Valued Member
United States
312 Posts |
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Yep, exactly what it looks like to me. Only problem is, I'm pretty happy with my holdings and that has never been a good sign. |
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Valued Member
Canada
128 Posts |
Looks like a flag to me with a breakout , maybe 3,000 by Christmas lol who knows
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Pillar of the Community
United States
1768 Posts |
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Gold backed currencies can't get out of the gate because they can't even get past the first and simplest step. No country would ever voluntarily prove their gold reserves for everyone to see. Who goes first? Lol, you probably hit the nail on the head. |
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Pillar of the Community
 United States
6495 Posts |
Large countries can intentionally manipulate their currency relative to commodities. If you peg your currency to a commodity, then that directly implies that other countries—or huge trading blocs like the EU—can manipulate your sovereign currency.
Rather than have a metal backed currency, I wish that we could just remove all the frictional losses on transitioning metals to cash and back. For example, capital gains taxes should be reduced for inflation or removed from certain categories altogether (or eliminated below a certain large amount each year). The challenge with PMs isn't necessarily that you can't hold them, but rather that there are so many institutional obstacles to liquidating them for use in commercial exchanges.
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Valued Member
Canada
128 Posts |
Scottsdale mint has a few good you tubes about all the commercial flights from London to the US carrying gold. APMEX also has some you tubes about the gold and silver as well. Something is going on with these metals as we might have an audit of Fort Knox and the London Metal exchange has moved deliveries for physical from 3 days to up to two months. I also see Walmart is now selling gold . Interesting times. |
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Replies: 24 / Views: 2,288 |
First Page
Posted 10/25/2024 4:31 pm
