by Chris Marcus, Miles Franklin:
Back in 2008 and 2009 many investors lost a lot of money when they were caught off guard by the collapse of the subprime market. Most of them, and possibly even yourself wish they had been able to spot the signs in advance and position their investments differently. But while you may not be able to do that, what if you were able to see the next big market move in advance?
Fortunately if that sounds like something you would be interested in, then you’ll want to keep reading. Because the signs of where the gold market is headed are there for those who choose to look. As just a month after Hungary decided they wanted their gold back, now Turkey is the latest nation to decide that they don’t trust the western banking system to safely hold their gold.
In one sense, the move hardly comes as a surprise. For a variety of reasons. Perhaps most of which are reflected by the recent comments of Turkish president Recep Tayyip Erdogan.
“Why do we make all loans in dollars? Let’s use another currency. I suggest that the loans should be made based on gold.”
While hearing these comments is shocking to those who haven’t been tracking the steady move away from the dollar, they do match the growing sentiment of frustration towards the financial, political, and monetary policies of the U.S.
Additionally, Turkey likely noticed the growing list of nations that have asked for their gold back (which now includes Venezuela, Germany, Austria, Belgium, Hungary, and the Netherlands ) and realized there might be a reason for those requests.
After all, the Federal Reserve continues to refuse an audit. While the last time anyone was allowed any sort of access to the vault in Fort Knox was 1974 (and that was hardly a convincing display in its own right, as you can see for yourself in the video below).
And despite Steve Mnuchin’s somewhat bizarre visit to Ft. Knox last year where he reportedly just said “I assume the gold is still there” without providing any evidence, it seems like foreign investors, who in many cases are creditors to dollar financing are no longer willing to just take his word for it. And why would they, given the past behavior of the U.S. financial and political industries?
After all, when the Germans asked for their gold back in 2013 they were told they could have 10% of it over the next 7 years! I still have yet to find any official explanation of why that was, and when you really think about it, it’s beyond incredible. Because what investor would be interested in doing any financial transaction and then be ok with hearing that it’s going to take 7 years to get their money back? Would you be ok with that?