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Goldman’s New Primer On Gold - ZeroHedge

Goldman’s New Primer On Gold - ZeroHedge

Release Date:  Friday, October 20, 2017

“Gold remains range bound as the market tries to digest yesterday’s news. The passing of the Senate vote on the budget plan for fiscal 2018 is expected to clear the path for tax cuts. It has been perceived that the Federal Reserve was looking for fiscal action to assist in their plan to normalize rates. The market reacted as expected with dollar strength and moderate selling in the precious-metals complex... Gold's price range of $1,278 - $1,288 will break-out soon.” (“Gold Price Remains Range Bound, But….” Kitco 10.20.17)

Gold ended the week down $23.30, closing at $1,281.00. Silver prices closed at $17.10, down $0.41.

What Goldbugs Have Been Waiting For: Goldman’s New Primer On Gold - ZeroHedge
In an in-depth study, Goldman finds two two key drivers of the precious metals markets: Fear and Wealth.

“The good news is that Goldman believes ‘precious metals remain a relevant asset class in modern portfolios, despite their lack of yield’ and disagrees with Ben Bernanke and the naysayers ‘They are neither a historic accident or a relic. Indeed, by looking at each of the physical properties of an ideal long-term store of value…we can clearly see why precious metals were initially adopted and why they remain relevant today.’

“We are pleased – in the current environment of central bank bubbles – that the establishment’s [favorite] investment bank [emphasized] gold’s role as a hedge to systemic tail risk, which is precisely what got most of us interested in gold more than a decade ago. To wit ‘Gold tends to preserve its real purchasing power over the very long run (albeit with substantial short-term deviations). Since Roman times, the real value of gold has remained more or less unchanged in the face of wars and political, social and technological shocks. Many investors therefore see gold as a way to hedge against structural tail risks, which could potentially erase the real value of all other financial assets…Throughout history, governments have run deficits and built large levels of debt. Having accumulated a large stock of debt, governments must either pursue austerity, and a way to boost growth, or engineer inflation (‘print money’) to erode the real value of their debt. Historically, governments often chose money expansion over austerity. Gold has traditionally been in competition with government paper currencies. When there is loss of credibility in the central bank/government’s ability to meet their liability of maintaining the real purchasing power of their currency, gold demand tends to go up. Normally, this happens when the government does a large monetary expansion, which the public fears could lead to currency debasement.’” (“What Goldbugs Have Been Waiting For: Goldman’s New Primer On Gold.” ZeroHedge 10.19.17)

Secret Of Gold Finally Found: Precious Metals Are Gorged In Cataclysmic Collision Of Neutron Stars – Yahoo!
For thousands of years, the secret of creating gold has fascinated alchemists, but now, scientists have finally figured the mystery out.

“On August 17, astronomers in the US picked up a signal from two neutron stars crashing together 130 million years ago, when dinosaurs still roamed the Earth.

“The impact, known as a ‘kilanova’ was so powerful that it shook not only space but also time, sending ripples – or gravitational wave - through the fabric of the universe.

“After the ripple was detected on Earth, astronomers across the world pointed their telescopes to the area of space from which it had originated and soon also picked up the bright afterglow from the collision. Inside that light were the distinct chemical signatures for gold, silver and platinum.

“’The observations showed we were observing a kilonova, an object whose light is powered by extreme nuclear reactions,’ he said.

“’This tells us that the heavy elements, like the gold or platinum in jewellery, are the cinders, forged in the billion degree remnants of a merging neutron star.’

“’In this particular event, it’s likely that 100s or 1000s of Earth masses of gold and other elements were made. If the rate of neutron stars mergers is as high as we now think, these dying stars are now the source of most of these elements in the universe.’

“Dr Samantha Oates, of Warwick’s Astronomy and Astrophysics group added: ‘This discovery has answered three questions that astronomers have been puzzling for decades: what happens when neutron stars merge? What causes the short duration gamma-ray bursts? Where are the heavy elements, like gold, made? In the space of about a week all three of these mysteries were solved.’” (“Secret of gold finally found: precious metals are forged in cataclysmic collision of neutron stars.” Yahoo! 10.16.17)