What is This Billionaire's 2021 Gold Bet?

John Paulson, a multi-fiat Fed note billionaire Wall Street trading legend, was interviewed on August 12th, 2021, and Bloomberg Wealth published these video clips this past week. 

This famed, often highly leveraged derivative, a trader who helped his firm and investors net over $20 billion on a trade shorting the 2007/2008 housing market credit bust, had additional sharp insights on the parabolic future price climb for gold.

The close to this week's silver and gold derivative trading hours ended on a positive note for bullion bulls. A massive near 500,000 jobs bolstered both respective silver spot price and gold spot prices in August 2021.

The gold-silver ratio also fell firmly on the news, showing signs that derivative traders were seeking alpha by placing down additional silver derivative long bets. 

Sideways spot price consolidations can wear people's excitement and patience out. But this last year to time for silver bulls like myself and the extended base we have been building signals tremendous upside energy likely ahead.

And with fiat creationist cartels en route to doubling their ballooning balance sheets within the last two years, well, a reckoning in store of value confidence is what I continue actively betting on and saving against.

This week we have some exciting news from various important gold stacking and even increasing commodity-price-discovering nations on the other side of the world.

We'll begin with news out of China.

Note the mentioning of shipping futures contracts and the massive escalating price squeeze ongoing for goods from China to the USA since the pandemic. 

Much of these shipping price escalations have and will likely continue to be passed off to consumers with higher prices for goods coming out of China.

Also, China is still the world's largest consumer of commodities, and it's not close in terms of the second-largest market buying most things critical for a quality modern lifestyle. 

Pretty easy to guess that China wants to wrestle much commodity price discovery influence away from futures markets like the US-based COMEX and NYMEX to have her longer-term agenda more easily appeased. 

Of course, Russia likely knows well the International Monetary Fund's Special Drawing Rights history.

The SDR began in 1968 as a supposed gold-backed freely convertible supra-central banknote only to morph into year another complete fiat currency contrivance.

The SDR fiat currency unit inputs basket has lost over 97% of its value to gold bullion. And the Russian Federation likely agrees that the SDR devaluation vs. bullion trend is not changing anytime soon.

Gold market analysts Daniel March and Krishan Gopaul were quick to cite massive gold demand out of India for this past month of August 2021. 

Remember how last week we mentioned Germany had almost imported 100 metric tonnes of gold in the first half of 2021?

Well, India did that and more in August alone. India’s most significant gold bullion buying nation f India is getting back on track, and it appears she is well open to importing 1,000 metric tonnes for the year. 

This week Market Watch had an exciting story citing estimates that an additional 20% of undocumented smuggled gold moves into India annually — stashed inside wigs, jeans, shoes, and other body cavity regions.

The reason for this at a large scale is the arbitrage of possibly avoiding the 7.5% duty and tax slapped onto both gold and silver bullion bar imports into India. A country that is preparing to launch trial programs for its fiat CBDC rupee late this year 2021.

The Indian banking system is notorious for being insolvent and not writing down bad loans and debts, so moving to a fiat CBDC grid and killing cash is likely a high priority for the financial powers. 

Finally, to close, I will leave a link to an interview I did yesterday with Tom from Palisades Radio.

In the interview, I go over a bit of what I am about to tell you. My recent less than 24 hours one day trip through Istanbul, Turkey, was eye-opening. The ancient and largest city on the European continent, with portions of it extending on the continent of Asia as well. About 16 million people live there at the moment. 

And the majority of the people living there are suffering under severe currency devaluation and ongoing price inflation.

Historically and currently, this part of the world has a massive gold trade, not merely in annual demand for high-grade gold jewelry manufacturing but also its growing gold refining capacities. 

Increasingly too, as the Turkish lira continues devaluing, their demand for silver continually grows, as likely the poor man's gold is deemed a better value and with a reasonable price range. 

In mid-2208, the Turkish lira was almost at par with the fiat Federal Reserve note, and now it takes over eight fiat lira to get one US dollar. So I went there with the express intention to buy some high-grade gold jewelry gifts in their world-famous Grand Bazaar. The trouble was they had a national holiday on August 30th, so I will have to return happily.

Here's the point, I didn't get my high-grade gold jewelry gifts, but what I did get was some perspective of how lucky I am.

That day I got to meet and sit with a young, charismatic Syrian refugee for a 15-minute tea, and we quickly got to the point where he mentioned how terrible his job was. He complained of having to work 12 hour days with no breaks and how his pay was demolished by ongoing lira price inflation. Never mind the fact that his home country was recently ravished by war. 

I bet if you asked a lot of these people here, they would tell you similar or even possibly worse stories.

You see, most of watching this video have been lucky, including me: Count, our blessings,

That is 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...