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Why gold is rising ?
This marks my third post on gold . You can check my previous posts which I had written back in November . Now every major news channel is talking about paper vs physical gold. They are also reporting moving gold from BoE to NY but they get one thing wrong. The stated reason is the arbitrage on the exchanges but that's not true. The arbitrage is even higher at Shanghai exchange but you don't see people moving gold to Shanghai then what gives ? Well you see that trump has given clear indication that he won't fund the war anymore. Which means that either Ukraine is going bankrupt and this eventually losing the money or someone else is going to bankroll them. Who is this someone else ? It's EU countries and UK. UK has a significant debt with Ukraine in the tunes of 100 of billions. And it doesn't seem like Ukraine will be able to pay it anytime soon. The movement of gold is to bring to from a country riddled with war debt to a safer country . Thats the reason for movement of gold. But how does it affect the prices ? You see , BoE doesn't really have the gold it says it has. This when owners start redeeming their gold their reserved gets depleted and soon they would not have anything on them. When BoE defaults on its gold deposits then the prices are going to skyrocket. The current upward movement is a reflection of that. So what should we do ? You know the answer if you have read the post .3
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