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Gold strategy in the current economy


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HOLA441
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Basel 3 is on course to regulate the LBMA out of existence. And with it will go all the associated arbitrage business and position-taking on Comex, because most bullion bank trading desks will cease to exist. The only supply to buy-side speculators of gold and silver contracts will be producer hedging.

In recent months there has been some limited commentary concerning the introduction of Basel 3 regulations and the implications for precious metals trading. These new regulations are scheduled to be introduced for European banks at the end of June — only seven weeks’ time — and in the UK from 1 January next, affecting all LBMA member banks.

This article explains the new regulations and concludes that the recent joint LBMA/WGC consultation paper addressed to the British regulator is unlikely to save London’s unallocated gold trading market. And because Basel 3 regulations are scheduled to be introduced into the UK at the year-end all banks in the London gold market can be expected to wind down their exposure well ahead of the deadline.

The unallocated forward settlement market will effectively be shut down.

Hedging into Comex futures from this source will also cease.

https://www.zerohedge.com/markets/macleod-end-lbma-nigh

 

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On 16/05/2021 at 13:59, warpig said:

Yummy. About time. I have some ETF exposure, but it is fully allocated (not sure I completely believe it). Mostly in miners now that are doing very nicely at the moment. These are a long term hold though…prepared for lots of ups and downs.

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Gold is now above the 200 dma on the daily. Golden cross is forming. The technicals are very bullish. (The last candle is a shooting star man, btw, so possibly a pullback tomorrow)

 

gld.png.75cb4f7ddeceb4e8a7adf5d6741c735d.png

 

The fundamentals also make a bullish case. Inflation is rocketing and there are is signs of the Fed tightening. Also June 28th is a key date for Basel 3. From what I've been told a lot of the gold bucket shops will be shutting down on this date.

 

Edited by Biggus
shooting star, not hanging man.
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16 of June is the date of the next Financial Open Market Committee [FOMC] any 'changes' to monetary policy could really impact on the Gold price.

Will interesting to see U.S inflation figures this month too. Any unexpected [further] spike could see Gold vol spike with it. 

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  • 2 weeks later...
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Not the best source, but could this be the next leg up in gold?  Could Macron top the excellent strategy Of Gordon and signal to the world there is a fire sale on gold , before selling?
 

https://www.zerohedge.com/geopolitical/frances-macron-urges-g-7-sell-gold-reserves-fund-bailout-africa

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On 10/06/2021 at 20:47, dirtyduck said:

Not the best source, but could this be the next leg up in gold?  Could Macron top the excellent strategy Of Gordon and signal to the world there is a fire sale on gold , before selling?
 

https://www.zerohedge.com/geopolitical/frances-macron-urges-g-7-sell-gold-reserves-fund-bailout-africa

Gold is down sharply today. I have a suspicion that some European banks are in trouble with the Basel 3 deadline around the corner. Efforts, such as the French government selling gold to bail them out are underway. Gold price could go down even more.

The media is reporting the reason for the drop is the Fed saying it might raise interest rates in a few years. Maybe that's the real reason. Or maybe there's some other reason I'll never find out. Either way I was stopped out. I'll buy back in when the correction looks to be over.

 

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2 hours ago, Biggus said:

 I have a suspicion that some European banks are in trouble with the Basel 3 deadline around the corner. Efforts, such as the French government selling gold to bail them out are underway. Gold price could go down even more.

I thought it odd that Macron wanted to sell Gold to bail out Africa...

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1 hour ago, MonsieurCopperCrutch said:

@Warlord gold is crashing bud. Best get out before you lose it all. It’s going to $0. 

😂 Yeah a guy i know who is involved in the market told me the World's governments are going to ban gold and drive the price back to $30 as China owns to much for their liking. Best dump it all now, Just trying to save everyone from not losing money. 🤣

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Just now, markyh said:

😂 Yeah a guy i know who is involved in the market told me the World's governments are going to ban gold and drive the price back to $30 as China owns to much for their liking. Best dump it all now, Just trying to save everyone from not losing money. 🤣

Gold actually has a use moron, you can make stuff with it ...  will always have a value in the market . Not bothered 

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4 hours ago, markyh said:

😂 Yeah a guy i know who is involved in the market told me the World's governments are going to ban gold and drive the price back to $30 as China owns to much for their liking. Best dump it all now, Just trying to save everyone from not losing money. 🤣

Gold mining is absolutely terrible for the environment and will be banned soon. My contact told me. 

@Warlord

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