{"id":64540,"date":"2022-12-27T09:14:53","date_gmt":"2022-12-27T14:14:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64540"},"modified":"2022-12-27T09:14:53","modified_gmt":"2022-12-27T14:14:53","slug":"zoltan-pozsars-gold-mageddon-deconstructed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64540","title":{"rendered":"Zoltan Pozsar’s Gold-mageddon Deconstructed"},"content":{"rendered":"
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Zoltan Pozsar’s Gold-mageddon Deconstructed<\/a><\/h3>\n<\/header>\n
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“[B]anks have been managing their paper gold books with one assumption, which is that [Nation] states would ensure gold wouldn\u2019t come back as a settlement medium.” -Zoltan Pozsar<\/em><\/strong><\/p><\/blockquote>\n<\/div>\n

Before we go any further, we read ZeroHedge’s report on this letter Dec 7th entitled:\u00a0Zoltan Pozsar: Gold To Soar…When Putin Unveils Petrogold<\/em>\u00a0(ZH Prem)<\/a>\u00a0and have been\u00a0 thinking on it since. Here is one of those thoughts pertaining to Gold’s\u00a0 evolving\u00a0 market structure<\/p>\n

The statement at top is arguably the most important sentence in Zoltan\u2019s recent post entitled:\u00a0Oil, Gold ,and LCL(SP)R<\/a>.\u00a0<\/em>It is how he closes that note.<\/p>\n

If you have read his letter (excerpt below) you may prefer quotes pertaining to Gold\u2019s price jump from $1800 to $3600 or Pozsar\u2019s follow up statement to the price of Gold potentially doubling where he wrote: \u00a0Crazy? Yes. Improbable? No.<\/em><\/p>\n

Those statements certainly are nice to read for real-money advocates; especially coming from one of the most respected economists on the street these days. We cannot lie it makes us smile as well.<\/p>\n

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However, for anyone with precious metals exposure, like a bank or presumably you reading this piece (thank you for that), the quote at top should rule them all. Here\u2019s why\u2026<\/p>\n

Why Banks Short Gold<\/strong><\/p>\n

Zoltan, possibly inadvertently, gives readers the rationale by which banks have been profitably shorting Gold since the 1990s. Here is our translation of that same sentence at top.<\/p>\n

Translated from the original Zoltanese:<\/p>\n

Banks have been using rehypothecation for decades fearlessly with approval of global governments who promised them Gold would never be used as a settlement medium\u2014i.e. have a practical use \u2014 again.<\/em><\/p><\/blockquote>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Zoltan Pozsar’s Gold-mageddon Deconstructed “[B]anks have been managing their paper gold books with one assumption, which is that [Nation] states would ensure gold wouldn\u2019t come back as a settlement medium.” -Zoltan Pozsar Before we go any further, we read ZeroHedge’s report on this letter Dec 7th entitled:\u00a0Zoltan Pozsar: Gold To Soar…When Putin Unveils Petrogold\u00a0(ZH Prem)\u00a0and […]<\/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":[63,124,309,374,33499,379,32688],"class_list":["post-64540","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-central-banks","tag-fiat-currency","tag-gold","tag-goldfix","tag-government","tag-zoltan-pozsar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64540","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=64540"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64540\/revisions"}],"predecessor-version":[{"id":64541,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64540\/revisions\/64541"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}