Crude Formula: ‘Valuing Gold In Barrels’

‘Departing Our Dollar World’

مغادرة عالم الدولار: Almughadara Ealam Alduwlar

TCRs, briefly, this is how gold‘s 12-day (week, year) rise to its highest non-inflation-adjusted price ever Friday, $2,350 USD an ounce, foreshadows linkage to oil barrels and non-USD currencies.

Gold is no longer driven by the dollar or the dollar world.

I relied on for this 
on Jim Anthony,  
investment strategist and for 
21-years, chairman and 
co-founder of Seabridge Gold SA SEA; 
Chris Powell, co-founder 
of Gold Anti-Trust Action Committee GATA; 
London investment banker Simon Catt;
fund manager and reciprocal-gold-theory  
strategist Peter Palmedo; others.

Also: trading notes below.
-- Thom Calandra

Points: 

— Did you know the inflation-adjusted high for gold is approx. $3,000 USD, set around 1980 or ’81?

— Or that much of what we see as the gold price is a paper tiger? Just 1% of futures contract gold on NYMEX is actually delivered. Try buying an ounce of gold for those prices; you will pay 5% to 8% more, likely.

—  Is that inflation metric relevant in the ongoing up-cycle for gold, other metals? Gold = purchasing power, as we know. Jim Anthony, whose analyses can be seen real time at Seabridge Gold‘s Gold Investor Feed, tells me today, “Gold is no longer driven by the dollar or the dollar world. The BRICS appear to be valuing gold in terms of oil. China’s gold market is always trading at a premium to NYC and London and that’s where the refiners are sending their product. To China. So inflation dynamics in the U.S. may net be relevant any more.”

— BRICS‘ goals, we also know, point to 2030, according to news reports from the August BRICS Summit. Thus, trade deals that abandon USD over time “could see a paradigm shift in the coming years as BRICS.” We could be seeing oil right now being exchanged for gold (or vice-versa) in Russia, India, Egypt, Ethiopia, etc.

Some more pondering — which by the way will not help your investing decisions unless you are, as I am, owning gold (and platinum, silver, etc) PHYSICALLY and have been since 1999. See trading note below please. (FYI, I purchase mining equities, coins, bullion, ETCs and ETFs when they fall, not when they swell. Right now, I am looking at anything that has not joined the commodities rally.)

Chris Powell of GATA stacks a robusto dispatch feed at GATA.org. He tells me just now:

“I think, the dollar is being murdered by its own government through overissuance, spectacular and still-growing indebtedness, and political weaponization.”

Coming: Simon Catt will host “Gold: Is this the real thing?”

Zoom Webinar April 17 at 11 a.m.Eastern Time — with Pierre Lassonde, Eric Sprott, Luke Gromen and others. Details soon.