Another reason to keep the price of precious metal low by central bankers is to balance their own gold and silver inventory with China as the Yuan is getting to be part of the SDR: the future currency between central bankers that will allow them to continue to feed our hungry governments for ca$h...!!
https://www.imf.org/external/np/fin/data/rms_five.aspx
Once done, there will be a shake down on market to cover all the shorts then, the price will be markup much much higher... probably in the coming year if there is no significant geopolitics event they will not be able to control.
My thinking is that actually on the spot market of gold we are seeing probably the last down leg taking place. I expect the price going as low as 1160- 1180$. At around 1200$, it will be time a very good entry point for investors.
Then enjoy the ride!!!!
N.B. SDR will eventually replace the US Dollar as currency reserve.
Personally I don't think the western central banks would dare to add to their inventory, there is not enough to supply the BRICS and if the west started to stockpile the price would explode to the upside. Cheers and thanks for the great comment.
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The FMI through BIS will increase the supply as needed especially for in time of financial crises, buying derivatives in trouble banks and future recession.
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What is the FMI? The BIS will run out of ammo when the there's a rush for the exit. Cheers
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Sorry, FMI is IMF in English... cheers
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