Gold

Venezuela’s gold reserves fell by seven tonnes in the first half of the year to reach just 98 tonnes, their lowest level in 50 years, according to data published on Monday by the South American country’s central bank.

Today, if gold had the same kind of performance as the Dow since around the creation of the Federal Reserve in 1913, then it would have topped out at around $7 758 [(29568/78.78)*20.67]. Yet, it only has an all-time high of about $2 089.

Berkshire took a new position in Barrick Gold, buying 20.9 million shares, or 1.2 per cent of the company’s outstanding stock, with a current market value of US$565 million.

Two major asset classes are major beneficiaries of the unlimited money printing and credit creation that is now taking place globally. One of them will end in tears and the other one has just started a major secular bull market.

Obviously governments and central banks will desperately try to introduce resets, new digital currencies, do a bit of hocus pocus with debt to pretend it has disappeared. The US might even revalue its alleged stock of 8,000 tonnes of gold. But their bluff will be called. The effects of any measure g...

To the question that some will inevitably ask ("Isn't it too late to buy gold?"), the answer is clearly no. It is even becoming urgent in the face of the risk of mistrust towards currencies brought about by the crazy policies of central banks.

It is fascinating that only 0,5% of global financial assets are invested in the only asset that has held its purchasing power in history. In the next few years investors, from retail to institutional, will all want gold. GOLD will be the SINE QUA NON investment that everyone wants to own.

Silver is expected to break through $26 resistance in mid August, before bumping into resistance at $27.50 and hanging off a bit. The level of $30 could be reached at the end of September, a deadline each year very important for the silver market.

It is evident that silver is moving as in the past and as in the past the rise can be impressive.

Gold’s unrelenting march higher shows no signs of slowing after a plunge in the dollar swept prices past the previous high set in 2011 and put the metal on track for even bigger gains.