GOLD'S SECRET WEAPON

 

Gold's seccret weapon is no secret at all, but somehow is left out of the equation when most analysts talk about gold.

The CENTRAL BANKS of the world all store quantities of gold as a RESERVE CURRENCY.

They don't hold bitcoin, or silver, or stock, or cowry shells, or livestock, or any of the other things that your hear about serving as money.

They hold gold.  In large quantities.  All of them. 

And now that the United States has weaponized all forms of paper currency against Russia, all the central banks of the world are seeking to up their reserves of the one form of money that can not be weaponized: Gold.

Gold trades on gold exchanges in most every country of the world.  A central bank that has gold can not have its reserves confiscated or simply nullified by dercree.  They can't have their reserves hacked or cyber attacked.

And when quantum computing becomes a reality some time in the next five years, all paper assets will be vulnerable.  Especailly Bitcoin.  Gold will not be vulnerable.

This alone will be a massive driver of the gold price for years to come.

Ignorant people question whether gold is still money because you can't pay your rent with it.  But as long as the central banks of the world consider it the safest for of money - it is money in the bank.

And for the private investor it holds the same function as it does for central banks: it can not be weaponized.  Gold in your personal possession can't be hacked, or cyber attacked, or confiscated.

Yes, there was a gold confiscation back in 1930.  But citizens voluntarily complied.  That wouldn't happen today.  Not in the modern decentralized and global economy.  

Gold is the private citizen's wealth protector just as it is the wealth protector of the Central Banks of the world.