From a transitional point of view, I'd say both types of transition cannot do without a better shoring up of the relationship between paper and physical, however you slice and dice it.
And, you will probably also know, European Banks, especially central Banks, have played a little different game than the FED, which was a bank without sufficient gold backing anyway. (used to go through Treasury)
That being said: there is a difference in transition. In the one scenario, Of the WEF, the price suppression must continue.
Not the price action last week in the Gold and Silver market plus the Eur/ Dollar on 5 minute charts. Phenomenal. These three seem now intertwined.
In the Trump scenario: Gold will destroy the FED ..... (if ......). In such a scenario a continuing rising price will be beneficial for a transition if the gold reserves are actually there.
It is fun the consider how the FED van be totally bankrupted with the stroke of a pen. ..... And it would case a cascading sell effect into Asia en Europe.
But I would say: just the rise of gold is not enough to conclude something, as other assets can be used to deflate and release pressure.
Great comments. My dad and I will have lots to parse through the next few days. Right now we are leaning toward covering positions and maintaining capital. Volatility has broken my bank more than once so I’m hedging on staying delta neutral until things shake out.
From a transitional point of view, I'd say both types of transition cannot do without a better shoring up of the relationship between paper and physical, however you slice and dice it.
And, you will probably also know, European Banks, especially central Banks, have played a little different game than the FED, which was a bank without sufficient gold backing anyway. (used to go through Treasury)
That being said: there is a difference in transition. In the one scenario, Of the WEF, the price suppression must continue.
Not the price action last week in the Gold and Silver market plus the Eur/ Dollar on 5 minute charts. Phenomenal. These three seem now intertwined.
In the Trump scenario: Gold will destroy the FED ..... (if ......). In such a scenario a continuing rising price will be beneficial for a transition if the gold reserves are actually there.
It is fun the consider how the FED van be totally bankrupted with the stroke of a pen. ..... And it would case a cascading sell effect into Asia en Europe.
But I would say: just the rise of gold is not enough to conclude something, as other assets can be used to deflate and release pressure.
Great comments. My dad and I will have lots to parse through the next few days. Right now we are leaning toward covering positions and maintaining capital. Volatility has broken my bank more than once so I’m hedging on staying delta neutral until things shake out.