gold news

 it's more or less doubled since yes the 2008. yes this is insane and what it's doing is destroying the global faith in the dollar hi this is Mike Maloney and I've got Adam Taggart with me once again Adam how are you doing doing great Mike how you doing great so uh you know the IMF just came out with a paper titled gold as International reserves A barbarous Relic no more question mark barbarous Relic no more uh you know it's interesting because Keynes wasn't taught when Keynes came up

with this phrase barbarous Relic what he was talking about was the gold standard that's his quote not gold itself so um you you took a look at a little bit of this and Ronnie strawberry of incrementum A.G uh summarized it in a series of tweets so what have you got on what did you get out of this all right yeah so Ronnie's um his uh Twitter handle is in Gold We Trust which is the big report that incrementum puts out every year um I'm going to say in Ronnie We Trust thank goodness he did this uh tweet

summarization because the paper itself was actually pretty dry um but uh basically what this report is saying is that um as much as you know the central banks have famously sort of denigrated gold right calling it the gold standard of The barbarous Relic and for for decades being net sellers of gold um they've actually been adding to their gold stores so they're kind of saying one thing publicly and doing another thing privately um so just pulling up um some of the key tweets here from from Ronnie

um there's one here that has a a chart showing uh gold Holdings and official Reserve assets of major central banks and you'll see here that it's increased by about 25 percent since the global financial crisis right um so you know that bottom was right around the time that um you know uh Ron Paul was asking Bernanke about it and Bernanke said yeah there's really no reason to have it except you know tradition um uh and uh you know again just sort of giving the impression that go you know

Gold's Meeting Lists in the World Monetary space now uh but obviously the central banks are privately singing a very different tune um you can yeah very clear V bottom here so what do you what do you think about that Mike well uh this also coincides with the time that I started giving my presentations on the death of the global dollar standard because it is coming and and uh lower down in Ronnie's uh tweets here uh you'll see that there's a chart that shows some of that that's sort of

in this report from the I am uh and uh this is one of the the analysis that they get from all of this is that uh most of these uh countries are either moving their uh developing countries they're up and coming countries they're not the industrialized Western societies they're the we are the uh the side that has been selling off our goal uh you know England is famous for selling off uh half of their gold right at the very bottom when gold hit 250 something dollars per ounce uh and yeah right there in the V bottom

of that chart that we just showed right yeah no this chart is the number of ounces held uh it was the year 2000 I believe or 1999 oh sorry you're right it was back farther in England uh so it was a V bottom in price not uh not ounces held by the world central banks you're absolutely right that was Brown's bottom right from from back exactly and so this line if you go toward the left on this chart it keeps on Rising because we've been selling off central banks have been selling off gold for years I I had this

chart only going up to 2007 uh in my book uh but um this does show a dramatic shift in the uh mentality of the world's central banks what they're thinking and uh this also has to do with emotion are they scared or not and you know right under this the very next tweet said says they also identified 14 countries that purchased gold and raised its shared of total reserves by at least five percentage points over the last two decades noting that all 14 were Emerging Market countries so the people

accumulating the most gold are the Emerging Markets uh which you know they've got large buyers and largest Sellers and you know it's to see sellers on this list is just seems so incredibly and and it's all basically the West it seems so incredibly dumb it it it does and it's kind of surprising to see Switzerland there at the top of the list which is sort of famous for storing gold for so many people from around the world yeah yeah so and as you go down further uh in these tweets you'll see that they start

talking about uh countries that where they there where sanctions have been in financial sanctions have been imposed by the United States United Kingdom European union and Japan and I had no idea uh how many countries we had placed the sanctions on uh and no wonder uh central banks are are starting to turn away from the US dollar and from other currencies and more and more toward gold uh exactly sorry just on that point so there were two key things I took away from this and that was one of them which is that these companies

are watching well first off um you know they've all gotten really beat up over the past year as the dollar just you know strengthened ferociously versus their currencies right so they know that they're vulnerable to Big swings in the dollar right so part of this move to gold is just to say hey here's a currency we can hold our reserves in um that helps us not be so subject to the vagaries of what happens with the US dollar right and then the second is is to your point they've been watching what

the US and its allies have been doing to other countries around the world and saying hey wait a minute like I might be in the US as good graces today but who knows tomorrow right I don't want to be completely you know subject to the type of uh you know sanctions embargoes whatever that these allies might decide to place on me so I need some insurance against that um and you know gold is the seems to be the obvious choice for them yeah when uh you know we really started weaponizing the dollar under George Bush and uh but

every president since then and Congress have used the dollar more and more as a weapon and that is one of the big Nails in the uh in the coffin of the global uh dollar standard and so one of these days we won't have the world's Reserve currency and we enjoy this huge advantage over the rest of the world because of it that is going going to be going away because of the abuse that our politicians have done to the US dollar uh which you know if you go down to um uh his 10th tweet there's

a four panel chart here and some of this is very interesting and one is the the first panel is geopolitical risk and economic policy uncertainty so you've got two lines here what I find interesting is that uh from 1999 until today Economic Policy uncertainty around the world is is has been in a constant uptrend uh that is dangerous and this whole idea of Fiat currencies that are basically valueless uh uh the evalu the value that they contain is an illusion that we place on these pieces of paper

um and uh geopolitical uncertainty um makes everybody question what's going on and you've got all these exchange rates changing and it becomes impossible the gold when we used gold there wasn't that problem when we were on the gold standard the problem was uh country's cheating goal by doing fractional Reserve schemes on gold standards and that is the reason we had economic crises under gold standards if if we had just had gold those crises either wouldn't have been crises or it would

have been very small by comparison but then you've got geopolitical Risk Index and you can see these big spikes I think that first one is probably probably 9 11. I think that one's 9 11. yeah probably the invasion of Iraq the next one is probably Syria I didn't check these dates but I'm just taking a guess but look at where it's going now this is the uh Putin point it's uh we shouldn't be laughing because this is serious stuff but yeah you're right I mean this is the third highest

point in the data Series right but it's a good reason for central banks and for people to uh be going toward gold right now and then below that you've got you know you talked about in the um uh the last video uh you showed a clip of Rick Rule and you talked about the about gold being a put on the dollar and uh he talked about it being insurance on the dollar and this uh chart just below the geopolitical risk the correlation of gold price and U.S dollar Index proves it because it's almost always except for

a few bumps here in the 90s it's almost always negatively correlated with the dollar so it is Insurance uh the negative correlations go almost to minus one means that they are the exact opposite of each other so 0.8 is a very high correlation of being uh inversely correlated with the dollar and uh so uh it's it is protection against inflation against exchange rate fluctuations and so on uh what's your take on that well what's what's interesting about that chart is if you look at the the latest data set

it looks like it's just beginning to start coming down again um and and I think the reason why they became more correlated last year was because the US dollar really strengthened like I talked about and gold was one of the few assets to hold its own right right um so that's why the correlation got more positive so if it looks like it's it's nosing over here and it's going to start coming down well one of two things is going to happen um it's going to do that either because

the dollar is going to get cheaper or because the gold price is going to go down and I'm going to bet given how stretched the dollar got last year the odds are higher that the dollar value is going to start coming down and gold is going to start appreciating versus the dollar I do have to say though that I uh do believe in Brent Johnson's dollar milkshake Theory I do too one of the things the big things that was punishing all of the countries when the dollar was uh Rising so rapidly uh they have to

accumulate uh dollars to pay dollar denominated debt and a lot of countries carry a lot of it and when they when the dollar gets more expensive it takes a whole lot more of their currency to buy a dollar and uh so it was very tough on them uh as the dollar goes up it requires more and more and more of their currency that they're going to want to try to reduce their dollar exposure and so uh paying down some of that dollar denominated debt becomes very very expensive uh but Brent did say that

there will come a time when the dollar and gold move together I also believe that so I would look for some of those spikes in this chart like happened back in the 1990s where it goes positive uh to happen sometime in the future but it doesn't mean that gold is going down like he pointed out there's there's uh two variables here they're both moving so and then the the next panel this next one country is targeted by the Big Four Financial sanctions I could not believe this this is out of

a total of all the countries we had like 15 of all the countries uh being sanctioned uh and this has risen to over a quarter it says percent of total right and you can look at that and basically say it's more or less doubled since yes the 2008. yes this is insane and what it's doing is destroying the global faith in the dollar by doing this this is one that's a picture of one of the main Nails in the coffin of the global dollar standard so do you want to go on to any other tweets here from Ronnie um actually we

pretty much finished the Tweet set so what I would do is I just encourage folks that uh you know find this interesting um you know go go read Ronnie's full uh set of tweets there but also go read the report itself you know I think the really important thing and it goes with the meme that I know you're going to show in just a second Mike as I said at the beginning is you know central banks are continuing to try to sort of send signals that they don't care about gold but when you look at the

actual data it tells a very different story they're definitely making a big move towards gold led by the Emerging Market countries yes uh so you know in closing this uh up here before I get to the meme I just want to show you a few things you know Keynes this this article was titled gold as International reserves A barbarous Relic no more question mark and Keynes had referred to the gold standard as being a barbarous relic so this is gold uh forty thousand dollars worth this can buy you a car you can put it in your

pocket try and buy a car with cash you're gonna need a briefcase to curate around but when they put us on a gold standard they started replacing this with these this was a gold U.S treasury note from 1922 it's a large format bill um to give you an idea of the difference here's a silver certificate uh that is a the smaller format Bill we used to have these enormous bills so a wallet had to be much bigger but the uh this is a 1935 uh silver certificate and then I've got a large format

silver certificate from 1923 here and these say on them that they pay out uh you know this is a promise to pay one silver dollar this is a promise to pay uh one silver dollar this one is a promise to pay a twenty dollar gold piece but when we replaced the real gold with these notes that is what uh got the foot in the door for all of this cheating on a monetary system that was very robust and super stable and soon we will have the new 20 bill so I think it's great that a lot of central banks are now placing their

faith in Gold uh and what's what will happen is you know very shortly they are going to be rewarded because that gold is going to be worth a whole lot more U.S dollars it isn't necessarily the gold going up it's the dollar going down but the gold will go up in purchasing power when it's compared to stocks bonds real estate and all of that so hey Mike real quick before you get to the meme I just wanted to share um so I remember so I I was born in Late July of 1971. so we went off you

know the Nixon slammed the gold window a couple weeks after I was born right so I've only known the modern dollar that we have now the the completely Fiat one um but I do remember as a kid going uh like to the movie theater and my friend getting in his change a silver certificate um and we we noticed oh my gosh you know this says you can hand it in for sober right and I don't think I saw one of those after I was like seven which is a great example of gresham's law right which is that bad money drives out good

all of those notes that were still around were very quickly gone once we went fully Fiat right right so uh you know you're a little bit older than me you might even remember seeing more in your time but but even I remember seeing the last vestiges of those before they got snapped up right well you know uh the US dollar people think it's been around since uh 17 since the coinage Act of 19 of of 1792 uh but it's a different dollar the the the dollar that we have today was really born August 15 1971. it's completely

different than the dollar that was from um the Bretton Woods era in 1934 to 71 which was completely different than the dollar from uh uh from the birth of the center of of the Federal Reserve in nineteen they actually went into business November of 1914. the Act was passed in 1913. uh from 1914 uh to uh 19 to 1934 was a different dollar and then from 34 to 44 was a different dollar yeah we just uh these Fiat currencies do not last um they are just a bunch of fancy curly cues and squiggles on a piece of paper

and then we put a picture of a very well respected dead guy on it and for some reason people will accept that and trade for something real it amazes me right in the world all right well look Let's Get To Your Meme I've distracted you okay so this is back to the central banks turning back toward gold and this meme shows central banks uh and Fiat is in love with the central banks but the central banks are once again in love with gold I want to thank everybody for watching and we'll see you next time

thanks Adam thanks Mike see you soon at goldsilver.com we have a price match guarantee free shipping global storage options and phenomenal customer service thanks for making goldsilver.com your bullion dealer