“The Dollar has peaked.”
~ Egon Von Greyerz
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Since the Federal Reserve started cutting interest rates, central banks around the world are expected to pick up their gold buying and…
Moving away from US Treasuries.
That’s been a ongoing trend since 2014.
Gold purchases have been going up while more and more central banks have been selling their treasuries.
Since 2019, the gap between gold and US treasuries as a percentage of Central Bank reserves has been closing sharply.
It appears as though gold may soon overtake US treasuries.
In fact, we’re almost up to 1970 levels of central bank gold holdings.
And, like I was saying, as the Federal Reserve cuts rates, we’re likely to see the trend continue.
And that means, the price of gold will most likely continue to go up.
Other than Central Banks buying up huge amounts of gold, ETFs also do a great job of that.
So, the simplest investment one could make right now, would be to mind the massive gap between gold ETF flows and the price of gold.
The historical trend is that they follow one another.
That is, until last year.
Look below:
So, although the price of gold continues to be driven higher, investment and therefore, gold continues to be driven out of ETFs, which is another signal for the retail investor.
If money flows into Gold ETFs, the price of gold will most likely be driven even higher.
That would point toward the GDX.
But, if you want to make big gains from gold, mainly gold and silver miners…
Even beating the S&P 500 by 57% over the next 12 to 18 months…
Then check out dollarhedgeinsider.com.
This is dollarcollapse.com’s premium service, focused on gold, silver, and natural resource investments for beginners, and investing veterans.
Our own Dave Skarica, a dot com bubble Gold Prodigy is the editor and mastermind behind the service.
It’s your choice, but a much needed one to make.
2 thoughts on "Mind the Gold Gap: 3 Charts Show Central Bank’s Move From Treasuries to Gold, And One Easy Opportunity for Retail Investors"
All must understand that the government of the USA demonetised gold on purpose to eliminate competition for the dollar.
NOW the folks are buying gold in volume at COSTCO!!!
One ounce wafers at the current gold price with a mark up for COSTCO. They just announced that they are also selling Platinum wafers!!!
Yes, here’s to seeing gold coins at 7-11 and AM/PM soon.