Metals

The $73 Trillion Bond Trap And The 4 Triggers For A Gold Price Explosion

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from Clive Thompson:

The $73 Trillion Bond Trap And The 4 Triggers For A Gold Price Explosion

Watch out for these words. They are triggers which could send the gold price soaring. “Debt”, “Inflation”, “Yield Curve Control”, or “Fiscal Dominance”. There are $73 trillion of government bonds in issue and that number is growing by $4 trillion a year. Add in corporate bonds and we have a global bond market worth $160tn. At today’s gold price of $4’600, annual gold production is just $543 billion. A 1% shift out of bonds to gold would be $1.6tn. It would absorb over three years mined supply. The effect on the price of gold would be huge.

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