Gold's latest beat down...
The driver, it seems on hindsight... was the "necessary response" to the issuance by the IMF of the largest ever tranche of SDR's...
The total of SDR's being distributed... not really all that large in relation to other recent central bank issuances, but, it seems there was an over-whelming fear that if the sudden surge of money into the market resulted in "inflation fears" driving gold higher... the connection would be made... allowing markets to think gold might be poised for going higher...
And, they can't have that...
So, the beat down was a flaming obvious bit of market manipulation... to prevent gold moving higher... on the basis of an event that no one really even knew had happened... They were front-running their fear... the message from which should be.... buy gold, buy gold, buy gold... BTFGD...
The messages sent... in the issuance of the SDRs, and the gold beat down... are threefold:
One, the global economy is struggling far more than we are telling you... things are bad.
Two, more money printing is needed, so we're printing more money... but, don't worry... its "transitory"...
Three... there is no inflation... money printing does not cause inflation... gold has no value... you should be afraid to own gold... because the price can suddenly drop for no apparent reason... be warned !!!
Here's a quick re-cap of the recent history in news articles that shows it was, and should have been seen as, obvious that it was coming:
February 11, 2021: G7 seen backing issuance of new IMF SDRs: sources
March 8, 2021: IMF officially approves increased lending capacity
March 26, 2021: IMF Special Drawing Rights: A key tool for attacking a COVID-19 financial fallout in developing countries
April 7, 2021: Explainer: Which countries will benefit most from an IMF SDR increase
June 21, 2021: Republican Senate Leadership on IMF Special Drawing Rights (SDRs): A Fact-Check
August 3, 2021: Article Above, Dated March 8... $650 Billion SDR's greenlighted... is finally published... proving... all the news that's fit to print... just as soon as we're allowed to print it...
August 5, 2012: Emerging market sovereigns get SDR boon but questions linger over reallocation plans
August 6, 2021: SDR allocation of $650bn – important but inadequate |
