Market Report: Major developments in gold
Mar 25, 2022·Alasdair Macleod
There are significant developments in markets generally. US Treasury bond yields have begun to soar, as our next chart shows.


With the war in Ukraine on its doorstep, its financial and banking links into Russia and Eastern Europe ,and a negative deposit rate the EU and its euro is in great danger. This is next up.

Both the BOJ and the ECB have been badly caught out by price inflation and will be forced to raise rates from negative sharply higher – or else markets will do it for them That is the message from the foreign exchanges. But rising rates are bankrupting the central banks, and in the euro system the national central banks as well, which happen to be the ECB’s shareholders. Furthermore, the most highly leveraged commercial banking systems happen to be the Eurozone’s and Japan’s. A full-scale banking crisis from currencies down is in prospect
A collapse in two of the world’s major currencies promises to be dramatic and a major threat to the whole fiat architecture. Often, a major event of this sort needs a trigger, and perhaps we had that this week as well. The West is stepping up its financial sanctions against Russia and is now trying to ban Russia from selling its gold reserves. The major error is that Russia is not a seller of gold for fiat it cannot use and wants to get rid of, but a buyer. This was confirmed yesterday by Pavel Zavalny, chairman of Russia’s Congressional energy committee, who said. “When we exchange with Western countries, they should pay in hard money… And hard money is gold. Or they can pay in roubles”
Boris Johnson added fuel onto the fire by threatening to stop Putin using gold reserves. One wonders how this comment is received by the central banks who store their gold reserves at the Bank of England. And even more importantly, those who have gold out on lease or swap, so don’t even have possession in custody.
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