Central Banks Continue Buying Gold at Record Pace

In a rising secular bull market, you have to climb a wall of worry until an eventual valuation escalation mania mountain top.

For those still scarred and scared from the long interim bullion bear market of the 2010's now well behind us. Well, they'll get left behind, way down below.

Many have yet to realize the big game we are playing, much less near a clue of the structural changes and upcoming shifts to the world's tectonic trading plates underlying the global economy and our future.

Well, take a ride and hike with me as we go through this week's relevant Bullion Market-related data and news.

And as we shine a light on modern-day blowhard Gold Illiterates, who will lie to your face with inaccuracies and obsolete, outdated thinking.

More on that in a minute.

This volcanic soil you see in our video this week is being plowed for food production.

Let us remember, a secular fiat financialization bear market has arrived, and the producers of really valuable things will be leveraged to demand relatively higher price premiums in our unfolding future.

This week more regional US banks threatened to fail.

Personally, one which I used from my years living in Southern California, moving away right before gold's interim bear market bottomed in 2015.

Happy to say that I was one of those onlooking who panicked first as I ACH bank ran out of that burning building in the nick of time. And while that particular bank has not failed yet. It looks like it is only a matter of time.

At the moment, there are about 4,700 FDIC-insured banks in the USA. And the last ones, myself or any of my business, are these derivative-laden dominoes awaiting a deflationary cascading future bank crisis crescendo so bad, most will be begging for direct fiat USD CBDC accounts with the fiat Fed or US Treasury. More on the topic of retail CBDCs later on in this update.

Central bank gold bullion demand has just made a record-breaking start to Q1 2023. Net buying totaled over 228 metric tonnes this past first quarter of 2023.

That is +34% higher than the previous Q1 record set in 2013, as back then, governments were heavily buying the interim gold bear market spot price dip.

Collectively they are doing so at a record pace because they know their system is failing, and gold bullion as the foundational bedrock of all finance has to be relearned by the world, yet again.

Turning now to a hashtag I have been using on Twitter a lot of late, #GoldIlliterate is something I save for true gold ignorance and idiocy. Which often comes flooding out of the woodwork as we will continue to break nominal fiat-denominated price highs now and in the years ahead.

For instance, this silly picture of supposed gold bars stacked in a dilapidated vault is often used in mainstream financial media coverage of the gold market.

Well, it is a Shutterstock gold cartoon rendering of what one might imagine, without knowing nor having experience, might imagine a gold vault would look like. 

Those who have not done their research nor fully understand the mountain we're now climbing will continue being proven fool’s gold as the coming years progress.

And this week, haughty gold-illiterate youtube fiat financial personality Dave Ramsey – again told his often non-financially educated viewership the following gold mistruths we are about to shoot down in a data-driven session.

Make sure you share this with him, I bet he'll enjoy being publicly called out on his gold deceptions.

The gold and silver markets had strong weeks as gold broke up against its nominal record price high near 2,080 oz in the middle of this past week.

The spot silver price climbed to close just under $26 oz, a key price level and battleground.

The spot gold price sold off to close the week down to just under 2,020 oz bid.

The gold-silver ratio fell to 78.

As promised, I want to give you a preview of our coming CBDC world brought to us by the central bank of central banks, the Bank for International Settlements, and their BIS innovation hub's preview via Project Icebreaker

The mirror and underlying trade settlement side of this coming system are called the m-CBDC wholesale settlement segment.

The coming CBDC world will be super inflationary by design, allowing us to legally write off the record debt and unfunded liability piles accrued to date.

You still have time to get bullion, but I am afraid the longer you wait, the more in fiat notes you will have to cough up to get the precious, proven private monetary store of value.

In time, $2,000 oz gold is going to be looked at as cheap.

That's all for this week's SD Bullion Market Update.

As always, take great care of yourselves and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...