More and more investors are buying gold contracts which require that physical, reaal world gold has to be delivred at the end as geopolitical uncertainty increases.
But Western banks appear to have sold many more such gold contracts than they have actual gold, making them vulnerable to a short squeeze and to collapse, according to a report by the ECB.
Issuing more paper certificates than gold in their vaults allowed was also the reason for the collapse of the Medici bank in Italy in 1494.
The paper gold certificates issued by the Medici bank evolved into our current fiat paper money (dollars, UK pounds, euros)
Since China has developed into a fin tech savvy super power par excellence, they may be buying gold to fan the flames of a gold squeeze in the West, though this is just speculation.
https://www.swissinfo.ch/eng/gold-markets-are-cited-by-ecb-as-a-risk-to-financial-stability/89344266
https://www.gurufocus.com/news/2872666/gold-could-trigger-the-next-financial-crisisecb-sounds-the-alarm
https://www.modernghana.com/news/1408396/banking-crisis-looming-ecb-warns-of-gold-collapse.html
https://www.zerohedge.com/sponsored-post/why-china-buying-so-much-gold-what-it-signals-global-investors
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