{"id":17643,"date":"2016-02-11T12:11:54","date_gmt":"2016-02-11T17:11:54","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17643"},"modified":"2016-02-11T12:11:54","modified_gmt":"2016-02-11T17:11:54","slug":"lines-around-the-block-to-buy-gold-in-londonbanks-placing-unusually-large-orders-for-physical","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17643","title":{"rendered":"Lines Around the Block to Buy Gold in London\u2026Banks Placing \u201cUnusually Large Orders for Physical\u201d"},"content":{"rendered":"
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Lines Around the Block to Buy Gold in London\u2026Banks Placing \u201cUnusually Large Orders for Physical\u201d<\/a><\/h3>\n
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First, let\u2019s look at the improved fundamentals. Gold bugs will exasperatingly proclaim\u00a0that fundamentals have been great for\u00a0the past four years yet the price plunged anyway, so who cares about fundamentals? To this I would respond with two observations. First, large institutional investors and sovereign wealth funds have been anticipating a rate hike cycle for a very long time now. They didn\u2019t know when, but they expected it. The fact that\u00a0the gold bugs never believed this is irrelevant; what matters is that\u00a0big money believed it, and it was perceived to be very gold negative. In their minds, this anticipated\u00a0rate hike cycle would confirm that things were getting back to normal, and if things are normal you don\u2019t need to own gold, right?<\/strong><\/em><\/p>\n

The problem is that this assumption\u00a0is quickly being called into question. Sure the Fed hiked rates once, but it is starting to look\u00a0more and more like a policy error. Meanwhile, other major central banks around the world are going in the opposite direction, toward negative rates. I am a huge believer in market psychology, and the psychology dominating the minds of most institutional investors over\u00a0the past\u00a0few years has been\u00a0that\u00a0things were\u00a0slowly getting back to normal. This has weighed on institutional demand for gold in a big way, and been a meaningful factor in the bear market (manipulation aside). If this psychology shifts, the shift back into gold could\u00a0be very\u00a0meaningful.<\/strong><\/em><\/p>\n

While that backdrop is interesting in its own right, what may\u00a0make the move into gold that much more explosive is the lack of alternative investments\u2026<\/strong><\/em><\/p>\n

\u2013 From the\u00a0February 3, 2016 post:\u00a0GOLD \u2013 It\u2019s Time to Pay Attention<\/a><\/strong><\/p>\n

What a difference a couple of weeks can make.\u00a0The<\/em>\u00a0Telegraph<\/em>\u00a0is reporting<\/a>\u00a0the following:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Lines Around the Block to Buy Gold in London\u2026Banks Placing \u201cUnusually Large Orders for Physical\u201d First, let\u2019s look at the improved fundamentals. Gold bugs will exasperatingly proclaim\u00a0that fundamentals have been great for\u00a0the past four years yet the price plunged anyway, so who cares about fundamentals? To this I would respond with two observations. First, large […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[374,6047,430,4285,7746,6174,1111,10412],"class_list":["post-17643","post","type-post","status-publish","format-standard","hentry","category-economics","tag-gold","tag-gold-bugs","tag-interest-rate","tag-liberty-blitzkrieg","tag-london","tag-michael-krieger","tag-physical-gold","tag-sovereign-wealth-funds"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17643"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17643\/revisions"}],"predecessor-version":[{"id":17644,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17643\/revisions\/17644"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}