Independent research, investigative journalism, penetrating commentary, and market coverage. Insight—your canary in the gold mine.
For thousands of years gold is the ultimate store of value. Currently, gold is undervalued as there are massive bubbles in asset markets and central banks continue to print money, which supports these bubbles. This is an unsustainable situation; and when the bubbles burst the gold price will rise.
On Wednesday, Fed Chair Jerome Powell stated he is considering “yield curve control.” Previously, in the 1940s, when the Federal Reserve controlled the yield curve, it created deeply negative real interest rates. If repeated today, this would cause the gold price to sky-rocket.
On April 23, 2020, the gold price breached €51,000 euros per Kg for the first time in history. The gold price in euros has increased by 555% since the euro was created in 1999. Put differently, since inception the euro lost 85% of its value against gold.
As new “emergency loans” to Italy will be handed out, let us review previous bailouts, and asses how much losses have been hidden from taxpayers. My estimates are that losses from Greek bailouts are at least €35 billion euros, but more likely north of €200 billion.