Grant Williams, Davos: On Gold

Watch the videos and ask yourself what Russia and China know that West does not? How about India? They know that there isn’t a lot of gold in the world and that they do not have enough. What do they need it for? They need it because it will be the nucleus of the next monetary system after the US dollar is largely rejected as a reserve asset. Look at the real valuation required for gold in USD to just balance existing claims. Understand that this is a bare minimum figure and assumes that everything denominated in dollars beyond 3 trillion USD will simply go away. This means future claims to benefits and all manner of securities, including over 1 quadrillion USD in notional value of OTC derivatives. The reality is that the Fed has a long way to go before it cannot expand its balance sheet any longer and that $10,000 figure will surely rise in multiples.

One thing should jump out at you that the 2nd video briefly mentioned. India has more gold than the EU and the US combined and by far is largest stash in the world. Very little of this gold is held at India’s central bank. Almost all of it is in the hands of the citizens at the household level. This literally makes India the most powerful economic force in the world by far if gold were valued at its true price free of paper derivatives gold. Russia, China, and the EU are all encouraging physical gold ownership because they know there is massive economic power when gold can flow from a currency zone. Gold at the central bank level must largely stay put as reserves and therefore it is the citizen’s gold that must flow to balance trade. You cannot have gold flow without gold stock. India is a loaded gun and will have incredible purchasing power at Freegold valuation for gold. The US is light years behind as far as household ownership of gold. We will largely be left eating dust as the East controls the bid for just about everything that can be bought in the world with their extensive stock of physical gold.. Our days of exorbitant privilege are coming to an end.

MS

Grant “Things That makes You Go Hmm” Williams on Gold (A Must Listen)

Heart the Jesse Livermore quote!  Rest at Zero Hedge.  I’d pay close attention to the fundamental differences between Moron Helicopter Bernanke and Paul Volcker.  We’re off the cliff this decade, there is no pulling it back from the edge, no cutting—It’s BK.

Grant Williams Simplicity Part 1

Heart the Egon von Greyerz quote, Psychopathic Economics has covered him here.  Also, in the second video, catch how long it was before the CB’s realized they needed to start becoming net buyers of gold.  Grant’s wrong ”slightly off” on India.  India’s people have massive amounts of gold, their CB may be light but the estimates I’ve read on how much citizen gold they have is staggering.  Rifles our CBs combined! [HOLY [Content Deleted]! My hat is off to Grant, after he covered India’s CB’s gold holding, he much later in video 2, tossed in a surprise slide titled Control in and covered “India’s citizen ownership of gold” (at the 11:37 Minute | Second point) he nailed it!!!!  I am truly impressed!!!  Most economists couldn’t find India or China on a map, when you get one who drills down into the citizens’ gold holdings, well, you know you have a gem!  Most economist don’t realize that giving 2.6 billion people our jobs has kindled an economy that is the 900# resource gorilla on the globe.  Again, as Chris Martenson says, “The U.S. population is China’s 1.3-1.6 billion rounding error”.]

Also Psychopathic Economics has covered some what he covers with the official imports of gold into China here.

The 10:50 minute | second point of the second video is really key.

Grant Williams Simplicity Part 2

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2 Responses to Grant Williams, Davos: On Gold

  1. Laura Hayes says:

    Some times its a pain in the ass to read what website owners wrote but this site is very user pleasant!

  2. MatrixSentry says:

    Glad you like it. I spend a lot of time at FOFOA.blogspot.com, but I use this site to aggregate a lot of pertinent information for people exploring gold. It prevents me from reinventing the wheel when someone asks me about gold. I just send them to the blog and hope they can find some utility. I also like technical analysis and it keeps my mind in the game evn though I no longer trade gold per se. I strictly buy physical gold and hold these days.

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