Dan, this was a great read. I've had an interest in gold and silver since the mid 80's. This interview brings an interesting perspective to holding a lot of "real" money. I believe most people think the almighty dollar is the king of the hill, man are they wrong.
Many statements here I've read in other articles but this piece ties many points together. Looking forward to part two.
Does Dan really believe the inflation numbers from the federal govt.? Inflation has been bouncing around 1.5% to 3.8% for decades, so I don't think 3.3% would have middle-class Americans this upset unless they are actually experiencing much higher price increases pertaining to essential goods and services. I think the leftist MSM know these numbers are suspect, but push them nevertheless, hoping it will help their Democrat allies. Just like they knew for years that Pres. Biden was frail and senile.
It has been a bit, but this was a great read. Thanks. This is this first time I have heard someone else say, gold is not really going up, fiat currencies are going down.
Great interview so far. Most people really don’t understand or believe that, as Alasdair stated, “gold is money; everything else is credit.” Can’t wait to hear part two.
I only pay for two Substack subscriptions: Macleod Finance and Bonner Private Research. Getting my notification of this interview was (despite the grim realities being discussed) like getting an early Christmas present. Thanks, Dan and Alasdair!
It doesn't seem like Alasdair fully supports the idea that China is sucking up their own supply from their gold mines while sucking in western gold too. It also seems his support of gold demand from his floor trading days and feel of markets is rather nebulous for me. Then he jumps to it being the currencies that are losing value and these analysts don't know that? But he doesn't support that assertion. OK, that is two positives for gold's price. My gut feel that it is more built up use of easy credit, for 40 years of continuing easier credit, that causes a credit default cycle and falling asset values, due to easy credit collapse where credit was over utilized and produced malinvestment and speculation and gold is the primary place of safety. But I'll take his floor experience and feel and the global movement of bullion as cooperative support gold price appreciation. Great!
In the 1970's as a young man with a few extra dollars at hand. I set off to travel the world USA and the world. I was stopped in my tracks when informed my American Express travelers checks would not be honored, the merchant would only accept a credit card. My bank would not issue a credit card as I had no verifiable credit rating. The bank offered a solution, I would deposit $3500 into a CD held by the bank warranty the credit limit on the card. After 3 years of perfect credit the CD would be returned and I could apply for a $10k increase. The monthly interest on the outstanding balance was 32%.
Imagine if issuing credit providers returned to these standards? Major retraction in the economy, with Retail sales would plummet, consumers would learn they don't need most of what they currently buy. Retail theft would be met with 10 years of hard labor.
I see, after reading the article a third time, that Alasdair does make a case for China buying incredible amounts of gold which is money versus credit in the west. Most likely an extreme lopsided case of China and Russia holding most of the money while the West holds all its credit, also an excessive amount by any standard. In the meantime Russia and China wait and accumulate real money while the west expands its credit, just buying more gold all the while. So which side would you rather be on? The money side or the credit side? One more point i.e. that the credit side is already defaulting i.e. inflation. Currently the inflation is slowing but, so what. Credit is 35 T, 100 T in promises for a 25 T economy VERSUS real money on the other side. Another note: if China has 30,000 tons of gold and we have 8000 tons then they have 4 times the gold we do. Meanwhile they have 250 % debt to GDP (I read lately) while we have 135 T / 25 T debt to GDP or about 5 times debt to GDP i.e. similar debt to GDP.
It’s very hard for people to understand they’re not getting richer. The value of each dollar is getting smaller, thus more dollars are needed. We are doomed if even the traders don’t get it.
Great Interview truly enjoyed Alaisdair's thoughts on gold in particular but the geopolitical situation as well. 20,000 tons at $250 /Ounce and Chinese savings accumulation of 35% is stunning. The West has been misled.
I have been reading The Bonner Epistles in their various shapes for a number of years and have formed the opinion that money, dollars, credit, arbitrage, stops, starts, shares, bonds, yields, rates, securities, swaps, receipts, prices, values, wealth, profits, losses, buybacks, payments, taxes, inflation, pensions, etc etc are just one giant mesh that nobody fully understands but individuals are able to work their various patches to shift bits of their balance sheets back and forth to enable the purchase of a beach house or whatever. Gold just sits and waits with a few demand pressures now and again. i.e. The value of gold rarely changes but its price in nominal dollars is a volatile beast.
This article just reinforces my view so well done Dan for putting it in front of us. I am truly amazed how the talking heads of the MSM living in their echo chamber cocoons seem oblivious to the fact that price and value have long since been disconnected hiding the underlying trends that will eventually prevail. Because they always do.
Dan, this was a great read. I've had an interest in gold and silver since the mid 80's. This interview brings an interesting perspective to holding a lot of "real" money. I believe most people think the almighty dollar is the king of the hill, man are they wrong.
Many statements here I've read in other articles but this piece ties many points together. Looking forward to part two.
Jim Marshall
Does Dan really believe the inflation numbers from the federal govt.? Inflation has been bouncing around 1.5% to 3.8% for decades, so I don't think 3.3% would have middle-class Americans this upset unless they are actually experiencing much higher price increases pertaining to essential goods and services. I think the leftist MSM know these numbers are suspect, but push them nevertheless, hoping it will help their Democrat allies. Just like they knew for years that Pres. Biden was frail and senile.
It has been a bit, but this was a great read. Thanks. This is this first time I have heard someone else say, gold is not really going up, fiat currencies are going down.
Great interview so far. Most people really don’t understand or believe that, as Alasdair stated, “gold is money; everything else is credit.” Can’t wait to hear part two.
I only pay for two Substack subscriptions: Macleod Finance and Bonner Private Research. Getting my notification of this interview was (despite the grim realities being discussed) like getting an early Christmas present. Thanks, Dan and Alasdair!
It doesn't seem like Alasdair fully supports the idea that China is sucking up their own supply from their gold mines while sucking in western gold too. It also seems his support of gold demand from his floor trading days and feel of markets is rather nebulous for me. Then he jumps to it being the currencies that are losing value and these analysts don't know that? But he doesn't support that assertion. OK, that is two positives for gold's price. My gut feel that it is more built up use of easy credit, for 40 years of continuing easier credit, that causes a credit default cycle and falling asset values, due to easy credit collapse where credit was over utilized and produced malinvestment and speculation and gold is the primary place of safety. But I'll take his floor experience and feel and the global movement of bullion as cooperative support gold price appreciation. Great!
When and why did you close out SGOV? I missed it.
John Keith
Brilliant analysis
In the 1970's as a young man with a few extra dollars at hand. I set off to travel the world USA and the world. I was stopped in my tracks when informed my American Express travelers checks would not be honored, the merchant would only accept a credit card. My bank would not issue a credit card as I had no verifiable credit rating. The bank offered a solution, I would deposit $3500 into a CD held by the bank warranty the credit limit on the card. After 3 years of perfect credit the CD would be returned and I could apply for a $10k increase. The monthly interest on the outstanding balance was 32%.
Imagine if issuing credit providers returned to these standards? Major retraction in the economy, with Retail sales would plummet, consumers would learn they don't need most of what they currently buy. Retail theft would be met with 10 years of hard labor.
I don't know if it just me, but the video Thursday appears to be exactly like Friday. Did I miss something?
I like the opening quote, Dan. But i suggest a revision it to say 'Its them coming to understand their currencies being destroyed. .....'
I see, after reading the article a third time, that Alasdair does make a case for China buying incredible amounts of gold which is money versus credit in the west. Most likely an extreme lopsided case of China and Russia holding most of the money while the West holds all its credit, also an excessive amount by any standard. In the meantime Russia and China wait and accumulate real money while the west expands its credit, just buying more gold all the while. So which side would you rather be on? The money side or the credit side? One more point i.e. that the credit side is already defaulting i.e. inflation. Currently the inflation is slowing but, so what. Credit is 35 T, 100 T in promises for a 25 T economy VERSUS real money on the other side. Another note: if China has 30,000 tons of gold and we have 8000 tons then they have 4 times the gold we do. Meanwhile they have 250 % debt to GDP (I read lately) while we have 135 T / 25 T debt to GDP or about 5 times debt to GDP i.e. similar debt to GDP.
It’s very hard for people to understand they’re not getting richer. The value of each dollar is getting smaller, thus more dollars are needed. We are doomed if even the traders don’t get it.
Great Interview truly enjoyed Alaisdair's thoughts on gold in particular but the geopolitical situation as well. 20,000 tons at $250 /Ounce and Chinese savings accumulation of 35% is stunning. The West has been misled.
I have been reading The Bonner Epistles in their various shapes for a number of years and have formed the opinion that money, dollars, credit, arbitrage, stops, starts, shares, bonds, yields, rates, securities, swaps, receipts, prices, values, wealth, profits, losses, buybacks, payments, taxes, inflation, pensions, etc etc are just one giant mesh that nobody fully understands but individuals are able to work their various patches to shift bits of their balance sheets back and forth to enable the purchase of a beach house or whatever. Gold just sits and waits with a few demand pressures now and again. i.e. The value of gold rarely changes but its price in nominal dollars is a volatile beast.
This article just reinforces my view so well done Dan for putting it in front of us. I am truly amazed how the talking heads of the MSM living in their echo chamber cocoons seem oblivious to the fact that price and value have long since been disconnected hiding the underlying trends that will eventually prevail. Because they always do.
Really good information. This is the kind of article I always look forward to getting from you. Thanks. Bob