Covering for the last well since the beginning of the year now this purely U.S Centric attempt to counter Safe Haven Western Market flows because it’s not affecting other flows um into gold comes really at the anniversary of the Russian incursion into Ukraine however the previous attempt back in March 22 to swamp
Unleveraged Safe Haven physical gold Demand with a wall of Highly leveraged paper gold it backfired and as we discussed last episode this Divergent condition incentivized the strongest competing Central Bank physical gold accumulations since Nixon closed the gold window over 50 years ago and we covered that last time but by November because this
Started in March by November this unfactored competing Global Central Bank physical demand was so large that it breached the leveraged highly discounted lbma CMP CME ring fenced paper wall we talked about this little ring fenced world that they try and contain gold and silver in but these unfactured physical outflows they
Force and unwind of these ill thought through naked short sell orders these are paper orders they’re not physical orders the resulting synthetic meddling really also wrong footed the FED agent too big to fail trading Banks which is what we call the cartel who had to scramble to shortcover very very bad
Bearish bets made into the end of 2022 they were betting against a price rise now this is where the 2023 story really begins so with the dollar for gold window reopened Russia openly ramped up the de-dollarization process on the first trading day of 2023 and that launched the much telegraphed
But mainstream media suppressed golden Ruble 3 currency and while a gold for oil energy and commodity trade really has been informally been evident with some friendly countries for quite some time and we talked about a couple of those last time this was the first formalized step to launch a non-dollar global trade
Settlement currency currency being the the the key here by sanctioning the digitization of physical gold placed on the trustless blockchain Russia has cut out the Fiat middlemen opening up physical gold to serve as a medium of exchange a unit of account hey does this ring somewhere and a store of value I
Mean goodness me what money is and of course what they’re doing was using this money to Benchmark a new trademan a trade settlement currency now look history books they’re going to look back I think we’re privileged at this point to be here now here’s three books are definitely going to look back
At this event where the weaponization of physical gold took a whole new turn opening up a highly liquid non-dollar mechanism for the bricks plus Nations and that also incorporating the 3.8 billion members of the SEO to be able to Benchmark Commodities energy and oil trade benchmarked in a real physical
Supply demand gold gram price now while we’re witnessing the Inception of the adoption of this golden Ruble 3 currency we’re just at the early stages guys and obviously this is competing against US dollar hegmani it naturally raises liquidity questions so it’s important to provide an idea of the
Potential scale of the adoption and why this will significantly raise the global price of gold physical gold now tokenizing physical gold as a settlement currency opens up the Lion’s Share and and get this guys these are real numbers the 7.5 billion 7500 I find sometimes I have trouble
Remembering quite the scale of this 7500 billion dollar Global oil and gas markets in addition to the 5 000 billion commodity in energy sectors to ultimately be priced in Gold grams and I’m talking about the Lion’s Share of it here the only the only thing out of whack when pricing Commodities in physical
Gold is the paper diluted price and as this Benchmark gold back currency gets adopted by some two-thirds of the unsanctioned globe purely from a supply demand perspective the gold price in dollar terms will have to rise substantially in other words it’s real value will increasingly be benchmarked
On real Goods not the rapidly debasing dollars so look this has always been the case throughout 5 000 more than 5 000 years of History one by one without exception every unbacked fiat currency system inevity inevitably collapses and gold is once more revealed as the only real fungible currency Benchmark to exchange
For goods the barter system whatever you want to call it but it’s this is the history of it and even if we look back to the formation of the FED back in 1913 one ounce of gold brought you 22 barrels of oil now 110 years later the same
Amounts of gold buys 24 barrels of oil in other words oil prices and gold has been basically flat after more than a century it’s only when trying to Benchmark Commodities against a fiat currency that currency debasement is actually exposed and that’s what the fight is that’s what the whole reason
The comex was formed after to click next and close the goal window it’s been blown open guys so here we are again this time it’s the Dollar’s turn to slide down the slippery slope to Oblivion and in a desperate attempt to push back the FED is still beating the
Same price makes Market Mantra I mean this is the the this is the the way that they can get people to switch off and say oh the price means it’s right rubbish is helpful to illustrate just how inversely correlated the unbacked paper driven Comics driven gold Futures
Are to the dollar Index and as we’ve Illustrated multiple times this is the primary input for the officially managed directional high frequency trading trading Bots now with being beginning to see this trade run into physical buyers again but very short term to understand why the paper price of gold has been
Discounted by these algorithms we only have to look at the dollar Index reclaiming its 2023 losses remember it went down after the launch of 2023 who’s back this is important to its fifth of January highs and then take a look at how this concurrent gold future self also chart
Painted are directly related full Gap Futures close into the 5th of January again exactly the same point and this time it was 1829 90. which is exactly where the Rally Point Rose from that’s exactly where it’s competing central banks jumped on spare Banks gold collateralization offer now these inversely correlated purely
Synthetic gold retracements were achieved utilizing the stronger headline newsprints we had some newsprints with a coordinated slew of hawkish fed speakers driving the dollar higher to reclaim its everyone looks at this technical 50-day moving average it’s an action reaction point you get it in Gold you get in
Silver many many uh smps everywhere so basically it was under its 50. it Rose above his 50 and really uh that’s at that point there was exactly where gold rose from now look two things become apparent though into this paper gaming competing Central Bank buying buyers
Have reappeared in large size at the the gold Futures fifth of January Rally Point again it tagged 1820 spot now basically the Futures price that most people track is the April delivery price so that’s about 1828 in April Futures but it’s the spot price the 10 times larger spot price 18 20 spot
That is the key level here and it was tagged and guess what happened and the second thing to note was heavily um uh leveraged momentums continuing to chase this dot on a screen are blinkered so the large unleveraged net stable funding requirement uh compliance spot gold effort FX for an exchange gold
PM fixes in other words where it’s fixed at the in at 3 pm UK time every day and they’re looking in this this at the knocking in this this gold spot gold for delivery into the dips any dips into and Below 1820 now as we’ve assessed given the bearish
Momentum that’s been generated into the rising dollar Index ahead of options expiry tomorrow most wholesalers and refiners have understandably been sitting on the sidelines waiting for the naked short momentum so that’s to bring the price to them you can’t blame them um before locking in your prices with
Your producers when they return they’re going to do so all at once and while you know while the off-grid Central Bank physical buying has consistently been evident and actually Traders if you go back to last two days Tuesdays um 11 round PM fix so in other words
Usually the the price the PM fix is settled on the bid and our side before it comes to a price usually two three rounds went to 11. um where we had reports of large Central Bank off-grid buying now even though we only see three to five tons actually
Ever contained inside this ring fence outside it’s much much larger so off grid we saw this running it kind of fed back into the fix now this synthetic gold price discounting has largely been self-fulfilling but this wall of synthetic supply has once again coiled uh the on-grid currently dormant
Physical market for a strong rally
