Banks

Having found a solid base, silver will be able to develop the third leg of its bullish rally.

At the beginning of last week, I was challenged with a wager on the gold price. The individual, who called me a “gold pumper”, wanted to bet $1 million on the gold price going below $1,000 before it reached the Maginot Line at $1,350.

Every end of May, Incrementum publishes one of the most comprehensive gold studies worldwide. The 2019 report’s leitmotif refers to the erosion of trust in politics, society, and the global monetary architecture.

The Italian Parliament voted for a motion to create "mini-BOTs", i.e. ordinary Treasury bills of low unit amount, the level of a banknote, to be able to be used routinely. They would not offer interest and would have no maturity, which would assimilate them to traditional currencies.

The global monetary regime has collapsed three times over the past 100 years, in 1914, 1939, and 1971. They seem to happen about every 30 to 40 years on average. It’s now been over 40 years since the last collapse, so we’re due. Got gold?

Even with this consistent manipulation, gold still reveals the deceit and the mismanagement of the economy. No UK prime minister has told the British people, that their money has lost most of its value in real terms in this century.

Venezuela has defaulted on a gold swap agreement valued at $750 million with Deutsche Bank AG, prompting the lender to take control of the precious metal which was used as collateral and close out the contract.

According to a ranking compiled by Les Echos, among the seventeen largest European banks, Deutsche Bank has the largest number of employees paid more than €1 million per year - exactly 643 - ahead of Barclays (542) and HSBC (399), despite being the largest bank in the EU by balance sheet.

Will the date of March 29, 2019 remain in the history of gold? Certainly, because it marks the resurgence of precious metals in the banking and financial system.

Do not believe anyone telling you the European banking sector is healthy. None other than the European central bank, the ECB, is aware of the problem, having just confessed to it.