As the Chinese central bank (PBoC) in 2024 has secretly bought approximately 600 tonnes with $50 billion U.S. dollars, it’s confident about where the dollar price of gold is going: UP.
My calculations using M1 and with 40% Gold backing is $20,000 oz Gold.
The Central Banks are certainly keeping a floor under Gold and by default Silver too, although the latter is now approaching 70% of supply for Industrial use.
$225 oz Silver? At current GSR of 89, it would make sense.
China no longer wants US treasuries as the Fed can’t raise interest rates high enough to keep pace with increase on the price of oil production. BRICS nations need gold to back maybe the yuan for internal energy trade.
Great piece.
My calculations using M1 and with 40% Gold backing is $20,000 oz Gold.
The Central Banks are certainly keeping a floor under Gold and by default Silver too, although the latter is now approaching 70% of supply for Industrial use.
$225 oz Silver? At current GSR of 89, it would make sense.
2025 will be a pivotal year for PMs for sure!
Charlie.
Lowercosta.com
China no longer wants US treasuries as the Fed can’t raise interest rates high enough to keep pace with increase on the price of oil production. BRICS nations need gold to back maybe the yuan for internal energy trade.