Written by Bryan Lutz, Editor at Dollarcollapse.com:
The most money is made during the hardest and easiest part of investing.
It is in the waiting, or…
What can be better understood as liminal space.
Webster’s defines liminal as:
“Intermediate between two states, conditions, or regions; transitional or indeterminate.”
It is the space “inbetween.”
A general principle for growth in almost every area of life is that the most growth happens in the space inbetween…
In the transition periods.
So it would stand to reason that in order to successfully navigate the markets, we would need to embrace the waiting game.
For example, if you see trend early on, and then invest in that trend while the rest of the market moves in another direction, you’ll may just make some money.
One of these long-term, and still somewhat silent long-term trend is the amount of Central Banks buying gold.
It was a trend that apparently doubled in rate after Russia invaded Ukraine in 2022.
Bloomberg reports:
More Central Banks Than Ever Plan to Build Up Their Gold Hoards
“A record share of the world’s central banks plans to accumulate more gold over the next 12 months, drawn by bullion’s performance during times of crisis and protection against inflation.
In a survey of 72 monetary authorities, 43% said they expected their gold reserves to increase, up from 29% a year earlier and the highest figure in eight years of data collected by the World Gold Council and YouGov. None anticipated a decline.
Central banks have been one of the most important drivers of a long-running gold rally that has seen prices double since late-2022. The pace of buying doubled after the invasion of Ukraine, when the freezing of much of Russia’s foreign currency holdings highlighted the appeal of bullion as a reserve asset…”
…Among the factors that threaten to accelerate the decline of the US dollar’s share of global reserves are the country’s yawning fiscal deficits, confiscation risk and speculation that foreign creditors may be treated less favorably.
All that stands to benefit gold. More than half of the central banks from emerging economies in the survey said that gold’s lack of political risk was a relevant factor behind their decision to hold gold, while 78% cited its lack of default risk.”
So, more central banks are interested in gold, and if you read between the lines, they’re also very aware of the counter-party risk of holding US dollars and treasuries.
The trick to holding the liminal space, to the waiting game, is to expand your perspective – broaden your view.
The more you can see and understand the bigger picture, the less you need to pay attention to the smaller day-to-day, or even hour-to-hour movements of the market.
That’s how you find your liminal profits.
