Wealthy Western Bullion Allocations Exposed

Four years ago, four of the world's largest central banks met to launch a then new coordinated policy called "Going Direct" literally on massive financial institution BlackRock letterhead.

Here I again highlight a section of that document where the fiat Federal Reserve, ECB, Bank of England, and Bank of Japan openly discuss how they would get around existing laws of each land in order to blow out their collective fiat monetary bases respectively.

They did this more than 6 months ahead of the March 2020 pandemic rolling shutdowns that followed.

Increasing and kicking off a new secular price inflation regime by massive fiat currency creation appears to have been their goal. And they were certainly successful as massive price inflation followed. 

This week, these same four major central banks met again in Jackson Hole, Wyoming. The most important market pertinent comments by Jerome Powell were as follows. 

Ole Hansen of Saxo Bank's commodity and precious metals desk reminded all this week what the spot gold price market appears to be awaiting for its next eventual price and relative valuation run higher.

Later in this week's SD Bullion Market Update, we're gonna dig beyond the fact that unsecured western gold ETF investors have been net sellers for basically the last two and half years while the spot gold price remains persistently consolidating for its next major move.

The data of how under owned gold and other precious metal investment allocations are in the west remains ridiculously low still. All while collectively, central banks have been admittedly buying official gold bullion in historic record size, front running the inevitable direction for gold's relative value higher to come.

Before we go there, we must have a look at highlights from this week's BRICS meeting in South Africa.

The most important news out of the much anticipated BRICS meeting this week was likely the formal invitation and inclusion of massive crude oil player Saudi Arabia and rapidly growing gold bullion refinery market share participant the United Arab Emirates or U.A.E.

Of course both BRICS pumpers and naysayers were out in full all week with pertinent points to be made.

But the fact is China and its growing global trading partners are leading us to a more multi-polar world. Declining unipolar US dominance and shrinking political sway using the still dominant fiat US dollar financial plumbing as leverage continues onward.

Former central banker & markets supervisor Kathleen Tyson points that while the growth of fiat Chinese yuan in US controlled SWIFT payment settlements has grown 2.5Xs in two years. That western global currency share data ignores CIPS which stands for Cross-Border Interbank Payment System, a Chinese payment system that offers clearing and settlement services for its participants in cross-border renminbi payments and trade.

According to her data the Chinese CIPS system moved over $14 trillion in fiat USD equivalent payment settlements in Chinese yuan last year.

This week Bloomberg highlighted a story covering direct mCBDC trade settlement developments ongoing, most important of which involves China and the central bank of central banks, the Bank for International Settlements, a system called Project mBridge. 

The most interesting takeaway from the article was the admittance that the IMF a unipolar US led monetary fund, appears concerned that such advanced direct payment settlement systems, without fiat $USD currency and financial plumbing as intermediary, could morph from a new state of the art technical payment solution to one that sidesteps dwindling SWIFT payment control mechanisms on for instance major BRICS economies and jurisdictions.

So as the USA's control systems and petrodollar foundations continue to shake and quake into a new multipolar order upcoming, the last thing many BRICS participants will want to do ever again is take any orders, loans, or mandates from the World Bank or IMF.

Those olden days are apparently numbered for many BRICS participants moving into closer ties with their largest trading partner, China and those participating in this growing multipolar world order.

The silver and gold spot price markets showed strength this week especially so in silver.

The spot silver price finished the week well over $24 oz bid while the spot gold price closed over $1,914 oz bid. 

The spot gold silver ratio peeled below 80 and briefly threatened to break a key technical support level of 78, finishing this week at 79.

The final two RICO not suave JP Morgan precious metals spot price riggers got prison sentences this week. Longtime JP Morgan desk head Michael Nowak weaseled out with a 1 year and one day sentence, and a paltry $35,000 fine. While double g Gregg Smith caught a prison sentence of 2 years and a fifty grand fine. Jeffrey Ruffo got off, still looks like a lizard.

Of course, and more seriously there are likely hundreds more white collar criminals involved in precious metals market rigging over the last few decades who got away with their market crimes. At least this week, a few fall guys finally got a bit of justice for current market participants to see. 

Before we get into pathetic western gold and precious metal allocation data illustrating just how far this gold and silver bullion bull market has yet to run.

I want to share with you a clip from fiat Billionaire on paper David Rubenstein's somewhat recent interview on Bloomberg July 20th, because he hammers home so many of the trends we see playing out now and developing ahead.

Massive secular price inflation brought on by the morally bankrupt central banks certainly affects poor people the most. You think things are divided and contentious now?!

We're going to finish this week by looking at data provided by two sources. Commercial Bank UBS based out of supposedly traditionally gold stacking Switzerland.

The cover of their latest Global Family Office Report illustrating no soft landing, basically shows their client base in the USA has 0% exposure to gold and precious metals. Their supposed gold savvy Swiss clients have a pathetic 3% allocation as of the end of last year.

Their collective commodity exposure akin, a mere 0 to 1% exposure illustrated in this data.

Moving on to the latest Knight Frank Wealth Report of HNW investor allocations.

In the United States, there are now 150,000 estates with net worths of over $50 million or more per estate.

They collectively have near no bullion to their names.

Fiat financialized institutions and net sellers of unsecured ETF shares have near none.

The sharpest players in the COMEX gold and silver crowd are likely waiting for the perfect timing to go leveraged short then long for the next major run when fiat Fed policies change and the next major bull runs gets up and running.

Let me remind you how the last 2001-2011 leveraged western COMEX driven spot price escalation affair looked.

That black line is an upward channel of COMEX gold longs consistently winning for a decade. The spot price of gold 7X'd over that run.

Western investors, and western high net worth estates have next to nothing in terms of precious metals exposure still.

What is going to happen when this black line finally makes a consistent move up and to the right again?

How many times will the current spot price of gold multiply before it manias out?

That is it 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...