Jim Rickards said that Gold stopped being taught in economic classes in colleges in 1974. Thats why 98% of the population in this country is ignorant about Gold. Don't think that was'nt planned!?!
Gold is to value what a yard is to length, or a pound is to weight... a universally accepted measure, a numeraire. In mathematical economics, the ''numeraire'' is a tradeable economic entity in terms of whose price the relative prices of all other tradeables are expressed.
Brilliant and meaningful conversation. Jay, you are an accomplished interviewer and made Randy feel comfortable. As such, he shared some tremendous insights. Bravo
The problem gold needs to overcome as the world reserve store of value vs USD is its negative carry (cost of vaults, audits, guardians, transport, etc) in exchange for 0% yield. Who pays that perpetual and recurrent negative delta? Jay, you should have asked this key question.
I'm still wondering why everyone is talking about gold and then talking about Bitcoin and blockchain separately??? Bitcoin is not the answer because it is nothing more than digital fugazi one and zeros on a screen it has no intrinsic value and it has many threats of grid down internet down hacks ect.. Bitcoin is not money but blockchain is a great technology.. why not combine all physical gold and silver in the world registered, authenticated, audited, tracked on the blockchain for a permanent record .. then you could either hold the physical precious metal or have the speed of digital transactions with a monthly physical settlement? Seems like this would solve all of the problems.. obviously gold would have to revalue much higher than current price. With the registration of physical precious metals on the blockchain perhaps we would have a true price Discovery model unlike the fake one we have now.. !
@@danielkurek7009 good insight, however gold's main problem (see my original post above) still exists regardless of whether it's tokenized via blockchain or not: who will pay the perpetual and recurrent negative carry associated with physical gold? As long as that "gold token" is backed up by REAL gold (not the farce that paper gold futures are), someone needs to pay for vaults, custody, transportation and audits of the actual physical gold bars in exchange for 0% yield (physical gold yields nothing, it's an inert rock at the end of the day). So... who?
@@andrewjames7717 gold wouldnt be able to be loaned out if it is meant to serve as a real back up for a gold-backed token/currency. That is the point of serving as the back up: it has to be redeemable at all times, and more importantly it has to be 100% default and counterparty risk free. The moment you loan it away to a 3rd party, you not only make it unavailable to be redeemed, but furthermore you add default and counterparty risk to the equation, and thus it stops being a 100% secure back up.
Jay. Nice set (austere). Just noticed that the slightly brown color of the chairs matches the slight brown color soles of your shoes inside the tread. (😊) My biggest “take home” is the SGU (Standardized Gold Unit) and due diligent comment that JPM is the first name he mentioned. Nonetheless, there will certainly emerge that type of standard ...
Does this mean that the Precious Metals manipulation will end?? There will be NO TRUST in markets until the Precious Metals manipulation ends. There should be fair market for Precious Metals markets -- Mark to Market -- resulting in true values that allow industries to stabilize their ledgers. If Fraud within the Precious Metals manipulation remains the BOGUS STATUS QUO then instability will be the consistent norm across global markets and industries.
Africa is borrowing money at much cheaper rates from China , Russia than from the World bank as the USD is the most expensive manipulated currency out there. So that is a big carrot to emerging markets. The USD reserve currency will just be used less over time which is not good for the USD and the debt of the USA.
