Bullish Demand for Gold?

Gold in Short Supply as Desperate Governments Scramble for Access

Governments are desperate

Investors today, most of whom have never seen a crash which governments haven’t bailed them out of, remain confident that if the current stock market correction accelerates, that central banks will once again step in. 

But while investors trust governments to bail them out, there is increasing evidence that those governments don’t trust each other. US debt held by China, Japan and Russia is particularly suspect. 

One key metric: according to the Institute of International Finance global government, business and personal debts rose to $247 trillion in Q1 2018. That’s more than triple annual economic output. 

Governments know that when inevitable defaults begin –through inflation or outright debt write-offs - that the most attractive paths will be to stiff each other, rather than voters. 

Since then, a slew of major global central banks, ranging from Russia, to China and Germany have been visibly stocking up their reserves, or repatriating them to their home territories.

DYI