BAR & COIN INVESTMENT: The Big Squeeze on Global Gold Production
Unfortunately, the system is rotting from the very banking core and without the continued propping up of assets the whole system would collapse. We must remember, the leverage in these banks including all the garbage from the shadow banking system is so high, that a small 1-2% loss of assets would wipe them out clean to the bone.
The Fed & Central Banks Games will continue for a while. However, fundamentals are beginning to get the upper hand…. and this has the monetary authorities quite concerned.
Before the collapse of the housing and financial markets in 2007-2008, the world was asleep as they continued to suffer from monetary gold amnesia. Global gold and bar investment was running at a lethargic 350-400 metric tonnes from 2001-2006. But all of a sudden, in 2008 demand for gold bar & coin investment doubled.