The Fundamentals That Support Strong Gold Prices
John Rubino, Founder of the Dollar Collapse website joins me to outline the fundamentals that he sees as supporting gold. There is no doubt that the past few months have brought the global and domestic issues more to the forefront but there is still a long way to go before large money managers truly buy into the PMs.
It’s taken me 20 years to become rather Zen about moves in the gold price. Although I sense it’s more likely to break to the upside now, given a number of central banks seem to be removing physical from the market rather than supplying it.
Hi Nigel….Thats a good point you make there…..Re. the banks
Cenrtal bank buying rather than selling would seem to change things, but we still dont know supply and Russia just found enough gold to back all their rubles in gold.
And how big is novo? billions of onces? sounds like were not gonna be short any time soon.
imo the best to hope for would be a popular delusion and a good crowd madness event.
It’ll happen, I just hope it doesnt take another ten years.
Virtually all of the gold that’s ever been mined could come to market at any time so there’s no such thing as a shortage in the same way that one of the industrial metals might experience one. So it’s not worth worrying about what Russia might have found.
Increasing the supply also just makes gold better money since a bigger pile is harder to dilute/inflate the way a central bank does with its currency. This is a very large part of what gives gold its stable value. In real terms (purchasing power) no other asset comes close to gold’s stability. Silver is runner-up because it is the second most difficult to dilute/inflate (due to its vast number of industrial applications which draw down the above ground pile).
Always have time to listen to John Rubino. Thanks also for allowing us to listen to your second guest Cory. Our day is coming………………..