By Bob Barney
The Turkish central bank delivered a bit of negative news in April, selling 81 tonnes of gold from its official reserves, taking its total to 49 tonnes. The World Gold Council (WGC) said that this brought about “the first net decrease in reported gold holdings” by global central banks for more than a year. Such a large sale by a central bank sent shudders through gold holders who can recall 1999, when the Swiss National Bank (SNB) announced in June that it was going to sell half of its 2,590 tonnes of gold as they “were no longer required for monetary purposes” said Philipp Hildebrand, a member of the SNB’s governing board. The central banks of Argentina, Austria, Australia, Belgium, Canada, Luxembourg, the Czech Republic and India had already sold gold. The SNB announcement helped push the Dollar price of gold down to just above $250/ounce.
But gold holders need not fear a repeat of 1999. Gold appears to be back in favour for official reserves; last year saw central banks buy a record amount of gold. Turkey’s central bank was the official sector’s biggest gold buyer, snapping up 148 tonnes of gold.
FYI: Although they sound the same and both refer to a unit of mass, there is a difference between the words ‘ton’ and ‘tonne’ beyond just spelling: A ton is an imperial unit of mass equivalent to 1,016.047 kg or 2,240 lbs. A tonne is a metric unit of mass equivalent to 1,000 kg or 2,204.6 lbs.
Turkey’s March and April sales this year, 96 tonnes in total, are more likely to have been done to meet local demand for gold, seen by many Turks as a way of protecting their savings against a collapse in Turkey’s fiat currency, the Lira, which has slumped by 60% against the Dollar in the past two years. Turkey suspended gold imports in February as its trade gap widened. The re-elected President Recep Tayyip Erdoğan has overseen policies of relatively low interest rates and emergency boosts to wages, in the face of inflation running at above 40%/year.
The advice but the plain truth is giving you today is investment of gold and silver right now is a good investment, and it is following the advice of the Bible and what Gold and silver.
Because of the foolish overspending of world governments, especially in Europe and America, inflation is holding the price of gold down right now. Thanks for paying for and 5% interest and it’s a better place to put your money, or people think so, then gold right now. That will soon change when a depression and a deflation occurs where the Fed and other world central banks will begin lowering interest rates dramatically to try to save a doomed economy, Causing the price of gold and silver to skyrocket as it did in the past. Think about this in 2000 the price of gold is about $600 an ounce. Today goes about $2000 on ours. $600 in cash in 2000 is worth about $485 today. Where would do you think you should put your money? Oh, by the way, $600 in stock futures and the Dow Jones in 2000 would be worth about $1300 today – yet most of those gains happened under the Trump presidency. The Dow Jones is actually below today two years later where it was when Trump left office.
Don’t be fooled, follow God‘s advice. Buy gold and silver and hang onto it for the rainy days, and don’t get tricked into the world Bankster’s whose plan is to rob every nickel that you have saved, and they have done a very good job over the years of doing just that!!
My commentary of the day, happy Sabbath day tomorrow!