Get Peter Schiff`s best tracks once a week – click here – for a free subscription to his exclusive weekly email updates. Want to learn how to buy gold and silver? Call 1-888-GOLD-160 and speak to a precious metals specialist today! As we reported last December, Russia`s crescent gold treasure is helping the country build economic and political stability and independence. And as Shae Russell, author of Markets and Money, noted, we shouldn`t ignore Russia`s crescent gold treasure. As a shareholder of Realty Income, Highwood and others, I consider the Golden Rule to be an essential pillar of smart investing. Keep in mind that REITs create value by investing capital at returns above their cost of capital. Our next “golden rule” is Realty Income (O), a net lease REIT that is my largest equity holding. A strategic merger with VEREIT (VER) was recently announced, which is expected to be completed in Q4 and Q21. The saying apparently comes from the Wizard of Id comic book. And while this may have strange origins, it still rings true. At least it must be in the minds of the Russians, because they buy a lot of gold. According to the World Gold Council, Russia`s gold reserves increased by 224 tons in 2017.
It was the third consecutive year with a growth of more than 200 tons, and Russia`s gold reserves exceeded 1,800 tons. To put this in perspective, between 2000 and 2007, the Russian central bank held only 400 tons of gold. “We discussed the issue of gold trading. The BRICS countries are large economies with large gold reserves and an impressive volume of production and consumption of this precious metal. In China, gold trading takes place in Shanghai, in Russia in Moscow. Our idea is to create a link between the two cities to increase trade between the two markets. » Real estate agents love cute sayings: The K.I.S.S. system to train new employees – Keep It Simple, Stupid. The golden rule of lending money – whoever has the gold makes the rules.
After the Crimean referendum in early 2014 and the political consequences that followed, Russia increased its gold reserves by nearly 75%. The First Deputy Chairman of the Central Bank of Russia, Sergei Shvetsov, told RT that buying gold would increase Russia`s independence. What for? Because of a simple rule: the golden rule. No, not this golden rule. The other. He who says: He who holds the gold sets the rules. He who has the money has the power; In this case, they are your customers. Customers have the power. They talk to each other. They exchange experiences. They are much better informed than ever and have higher expectations.
Even though the precious metal is not at the center of the financial system today, gold is still synonymous with power. Regarding the complexity of funding agreements and the need for dozens of documents, Peet said, “It all comes down to the golden rule. They got the gold; They are the ones who set the rules. I will not enter into the geopolitical situation. Any intelligent person understands the value of gold to the financial and economic security of the country. Vladimir Putin and Xi Jinping are among those who know the golden rule: “He who has the gold makes the rules”. To make counterfeit gold even safer, the Bank of England was tacitly willing to lend physical gold to members of the London gold market in case things got a little tricky and our coffers were empty. When one of the members went bankrupt, the others were beaten and with the Bank of England holding the ropes, the customers were rescued. But I didn`t get a bonus this year. And this pseudo-confidence suited the brilliant theoretical economists.
We, the government, we the central bank, we the BIS can print the margin. That`s what fiat currency is: no different from BitCoin and easier to mine. Derivatives are not margined and therefore have no limit and may not even appear on the balance sheet. The big Wall Street banks will accept our fiat dollars as margin and produce gold to flood the market. Once investors swallowed this surprising pill, it was easy to sell them gold that simply didn`t exist. Of course, there were cautious investors who found it hard to believe that people like Mocatta, Montagu, Rothschild and Sharps Pixley were undisputed counterparties and wanted to be sure that gold would be there when they asked for it. Quite simply, we said. Don`t bother paying for it, just give us an initial cash margin and accept a margin of variation and our paper promise is as good as gold. It was the simple detour.
If you thought the price would go down, you could sell us gold you didn`t have and limit trading in the same way. Then came a bunch of options and other products and the derivatives market – because that`s what this chimera was called – started spinning like a tornado. “You`ve heard of the Golden Rule, haven`t you? Whoever has the gold makes the rules. Gold bars now account for 17% of Russia`s total monetary reserves. In comparison, China`s gold stocks, which account for about 2.5% of its reserves, are being eliminated. Disinformation has kept this powder keg secret for many years, and since 2018, the financial stability offices of the world`s central banks have been following instructions from the Bank for International Settlements to hide the perception of inflation by manipulating the gold market. Only a few central banks are currently accumulating gold. Official gold reserves worldwide increased by 371 tonnes. The biggest buyers of the yellow metal last year were Russia, Turkey and Kazakhstan. And the Russians bought more gold than all the other countries combined. Last year`s buying spree made Russia the sixth largest gold holder in the world. And the Russians have almost caught up with the Chinese, at least based on China`s official figures.
(Many analysts believe the Chinese have far more gold than they publicly reveal.) Remember the golden rule! Whoever has the gold makes the rules!! A sad/accurate description of our culture.