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| The US dollar and gold and silver are inversely correlated. They are each other opposite. Only for short periods the precious metal prices and US dollar have moved in tandem although I think that might soon happen again in the quest for safe havens in order to preserve capital.
on gold price suppression, he say:
! The reason for the suppression is that strongly higher gold and silver prices would be a red flag to the improving stock markets indicating that there is something sincerely wrong in the markets.
In 2012 Central banks bought more than 500 tons of gold. Especially the Bank of China is aggressively buying gold, through its own hedge funds, to add to their reserves and as a hedge against their $3trn in mainly US dollar denominated forex reserves. They don’t trust the reserve currency, the US dollar, following the inability of the politicians to solve the structural budget and debt problems which signify the final chapter of the aging and less productive baby boomer generation.
The real benchmark for risk and valuation is no longer interest rates but gold!
The real benchmark of the state of affairs is the gold and silver price. These are the real benchmarks, the constants of valuation and risk and no longer the heavily manipulated interest rates or currencies. The transformation from a paper (US dollar) based system to a gold backed system has been underway since 2001 and the quest for yield is increasingly being replaced by the intensifying need for preservation of capital.
http://www.321gold.com/editorials/groenewegen/groenewegen032313.htm...
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Gijsbert Groenewegen on gold and silver heading higher and why
