The Bretton Woods Monetary System was not a Gold Standard, in the purest form, but it was a Gold-Exchange Standard. US political and economic dominance necessitated the dollar being at the center of the system.
The gold price dropped precipitously on Sunday evening, August 8. Or it was smashed down, depending on which headline you read. We look at the data to see what really happened to the price of gold.
Once again it is clear that the BIS remains an active trader of significant volumes of gold swaps on a regular basis. So far there seems to be no definitive sign from its monthly reports that the BIS is reducing..
Before looking at the Sunday evening orchestrated plunge, the key point to remember is that the Friday morning data and how it was digested, was already embodied and reflected in the gold price by 10am on 5 August ...
It has been a very challenging year for precious metals investors, and our struggles may continue a while longer. However, all is not lost and we are not yet doomed to repeat the pattern from 2013-2018.
On top of the structural supply issues you have continued money-printing and borrowing to pay for exorbitant social programs and pandemic relief. Both are inflationary and provide another tailwind for commodities.
The precious metals futures markets launched shortly after Richard Nixon closed the gold window and removed the last vestige of gold backing from the Federal Reserve Note.
To escape the burden of steeply rising taxes, the affluent will step up their exodus from big cities, creating a deflationary money spiral that will feed on itself. This will worsen when subsidies from the U.S. Government are scaled back.
