Gold has been mandated by the Basel III accord as security for international banking transactions, specifically precious metal transactions.
As the new standards unfold, the Fed is simultaneously risking fiat extinction, along with every other central bank in the world.
Here are the implications, the relevant and compelling details, and the reasons why anyone without a shiny yellow investment is probably going to shed big tears in another short while.
Gold has never had a game plan for dominance like this, largely constructed by its competitors for investor dollars and Regal Assets can help out.
Commerce and industry are still busy rupturing into those who will go extinct and those who just demonstrated that not even a global lockdown can really dent them.
Central banks are pumping money into life on earth in a hitherto unseen manner.
Rather, it’s never been seen without consequences, usually dire ones, but we’re still at it, trying to fix other’s greed with optimism and newly minted liquidity.
While the repercussions of such rolling of the presses can be artfully managed for more benefits than disadvantages, at least in theory, there are reasons to believe the Fed might eventually fluff this one.
Own gold, not dollars
Taken as a whole, the international banking fraternity looks like a desperado, especially viewing their ever cheapening assets against gold.
They have their talents and might keep the wheels on fiat a lot longer than common sense would predict, but gold looks like a long-lost lover to investors right now.
The precious metal is extremely attractive in the current market melee, and its value is going to rise politely but consistently.
To be clear, fiat hasn’t yet been substantially cheapened by us all watching banks shamelessly print it in mountains like never before, but it does feel wraith-like, grisly.
That’s not a good omen.
This is the current reality making gold shine, and the precious metal hasn’t even done much of its own volition to be here, other than of course consistently growing in value from century to century, and remaining humanity’s only real common currency.
There’s more than that current reality behind gold’s renewed sparkle, however, with Basel III virtually mandating its value too.
Gold’s history is singular, remarkable, and as any indicator of its future (and in the case of gold, it is), provides strong support for the fact that gold is going up.
No one would predict how far up, but significant, substantial, and sizeable are all accepted terms in the current parlance.
An ancient history of asset dominance
It was in 1971 that gold began to find its value in modern markets, when the US went off the gold standard, and both gold and the US dollar started free market trading.
Gold’s initial rise was a definite bull run, although it suffered the depression of investors alongside everything else in the 2001 dot-com bust.
Its current status is that it’s in demand, and has been for a while.
Upward pressure on gold will continue for a host of reasons, compelling reasons, but also because it now seems such a steady asset in difficult times.
Investors looking for the train about to pull out of the station had better buy gold.
Even as diversification security, it’s inevitable that the near future will see new heights for the world’s oldest and most fungible currency.
Also Read: Precious metals are shining