Early morning thoughts... Recently portfolio managers have changed their recommendations on holdings increasing gold holdings up to 20% when previous recommendations were zero or maybe 2%. If this were to occur, a shift to gold, it would be a boom for gold. But it might crash AI and everything else when all that money, When asset allocation was shifted into gold requiring the sale of stocks and bonds. Imagine what might happen if this shift to gold was 20% and immediate. It would certainly hit the gold derivative's market which would then hit other derivatives and then you see a spiral unraveling... Just thoughts. Or am I mistaken.
I don't think you're mistaken. I believe it was Morgan Stanley that said: 60/20/20 (bond/stocks/gold).
If that would happen overnight, the world as we know it would crash. Thus benefiting no-one. A gradual increase is already seen as the price pressure in PM market does not let go.
Funds in general keep around 1-3% (higher estimates are 5-10%) in gold. Silver is not even mentioned! If this would increase to 20%, it would mean sell pressure on stocks and buy pressure on gold. Money would also flow to alternatives like silver, platinum and palladium. As these markets (4T) are EVEN less liquid than gold (24T), it would be the equivalent of a rocket taking off. Next stop: the moon.
There won't be any metal left for the industry. As everything will be scooped up by investors (?speculators?).
The paper trading in gold would cease to exist and the shorts would be carried out. However, they see this coming as the big banks reduced their shorts tremendously the last months.
Interesting times at least. Can't wait for Shanghai to open later today. I'm expecting a huge gap. Especially considering the price action on Friday.
Early morning thoughts... Recently portfolio managers have changed their recommendations on holdings increasing gold holdings up to 20% when previous recommendations were zero or maybe 2%. If this were to occur, a shift to gold, it would be a boom for gold. But it might crash AI and everything else when all that money, When asset allocation was shifted into gold requiring the sale of stocks and bonds. Imagine what might happen if this shift to gold was 20% and immediate. It would certainly hit the gold derivative's market which would then hit other derivatives and then you see a spiral unraveling... Just thoughts. Or am I mistaken.
I don't think you're mistaken. I believe it was Morgan Stanley that said: 60/20/20 (bond/stocks/gold).
If that would happen overnight, the world as we know it would crash. Thus benefiting no-one. A gradual increase is already seen as the price pressure in PM market does not let go.
There is not a lot of metal to sell, but a lot of demand. I explored this in several of my articles (most notably here: https://no01.substack.com/p/the-silver-conspiracy).
Funds in general keep around 1-3% (higher estimates are 5-10%) in gold. Silver is not even mentioned! If this would increase to 20%, it would mean sell pressure on stocks and buy pressure on gold. Money would also flow to alternatives like silver, platinum and palladium. As these markets (4T) are EVEN less liquid than gold (24T), it would be the equivalent of a rocket taking off. Next stop: the moon.
There won't be any metal left for the industry. As everything will be scooped up by investors (?speculators?).
The paper trading in gold would cease to exist and the shorts would be carried out. However, they see this coming as the big banks reduced their shorts tremendously the last months.
Interesting times at least. Can't wait for Shanghai to open later today. I'm expecting a huge gap. Especially considering the price action on Friday.
and the bubble doesnt pop... As long as you can print and gift money for free...
There is not one, but 3 bubbles. And yes, all of these will "pop" to varying degrees. But they will not pop until it pops.