Wednesday, July 27, 2016

Gold on the global merry go round!

Does anyone really know what's going on with gold recently? Maybe a few supra-national shadow players, but that has to be about it!

Switzerland has been a major safe haven for gold for many years. Many countries around the world get Switzerland to hold a good percentage of their gold for them, deeming it to be one of the most secure places in the world. It's also a major refiner of gold.

So what am I confused?

Venezuela has exported massively to Switzerland because the country is falling apart.

However many EU countries are either talking about or already repatriating their gold, thinking is not secure in New York, Ottawa or Switzerland.

The USA has historically pushed all their gold to Switzerland for safe keeping. Yet, in a sudden turn around, Switzerland has exported massively to the USA. Alarm bells rang in many camps!

It's like musical chairs!

Commentators will allude to monetary policy, political instability etc when talking about these things, but no one thought we'd see Switzerland divesting itself is gold! The only obvious reasons are fear of natural disaster or massive industrial accident (yes, CERN has really been pushing the boundaries dangerously). But wait, there's one more. Fear of war.

Some commentators say Europe is in danger of civil or religious war due to conflict with Muslim immigrants ; others say war with Russia is an imminent threat. If so, gold may not be safe in Switzerland.

Go figure! There's a verse from the Bible comes to mind when I think about hanging on to gold, from Matthew 19:

23  Then Jesus told his disciples, “I tell all of you with certainty, it will be hard for a rich person to get into the kingdom from heaven.

 24  Again I tell you, it is easier for a camel to squeeze through the eye of a needle than for a rich person to get into the kingdom Of God.”

The 'Eye of the Needle' was apparently a small gate in the wall of the fortified Jerusalem City, that a camel could only get through of its load were removed and it went on its knees. That's the analogy for the rich today who sell to preserve their wealth. You can get into heaven if you are willing to unencumber yourself of riches and get on your knees before God.

So so knows what will happen with gold? God does. Maybe a few shadow players do. For me, I'm unencumbered by wealth and happily on my knees, confident in God's grace and my place in heaven.

Some reading from a quick Google search...

https://www.bullionstar.com/blogs/koos-jansen/venezuela-exported-35t-of-its-official-gold-reserves-to-switzerland-in-january/

https://www.rt.com/business/209591-gold-europe-gold-repatriation/

https://en.m.wikipedia.org/wiki/Gold_repatriation

And them some! Some nations are getting to get an alternative global trading currency going. The BRICS countries have made an effort. China and some Asian partners have also. And lastly, China itself has too, and has now floated its gold backed currency. Implications? Who knows!

One thing I do know though is USA owes China massively, and China is not willing to take payment in USD any more, or in US Bonds. I imagine if USA has to fund its way into this new trading platform, gold may be a necessary commodity. Now that would upset the apple cart! Some countries would even go to war rather than have the benefits and profits of their globalist currency usurped! Let's hope not...