Maris Research

Gold's sharp rise throws Financial Times into an erroneous sulk

Share on facebook
Share on facebook
Share on twitter
Share on linkedin

 — Published: Wednesday, 29 July 2020 | Print  | Disqus 

Dear Friend of GATA and Gold:

Appended is tomorrow’s editorial in the Financial Times, which, taking note of gold’s sharp rise in price, begins with a factual error, goes on to sulk for six paragraphs, and concludes with the hope and expectation that gold will go back in the dumpster eventually.

The error beginning the editorial is the assertion that gold doesn’t pay interest. Gold doesn’t automatically pay interest like a bond because it doesn’t have to, since holding gold incurs no risk. An ounce of gold today will be an ounce of gold tomorrow, whatever happens in the world, even as many borrowers have failed and even currencies have failed as the regimes issuing them have collapsed.

Gold is money in itself and no one else’s liability. But gold can pay interest if its owner wants to lend it, just as fiat currency cash can pay interest and just as central banks themselves have charged interest in lending their gold to investment banks for hypothecation and price suppression.

The FT attributes gold’s rise to “uncertain times” — geopolitical tensions and the failure of the U.S. government to get the virus epidemic under control. The FT

... continue reading 3rd party author's post at source website

order-1586392_1280

Can't Get Enough Freebies? Subscribe to our Newsletter!

We will send you free research and analysis summarized at the end of each month.

Newsletter Sign up

Top Posts

PLACE HOLDER FOR AD PAGE – SEE 18:– OF VIDEO.€

What is Flywheel?

notes-150587_1280

More Articles.

Mark Watson

Texas regulators mull scarcity pricing, outage planning, generation performance

Highlights Operating Reserve Demand Curve at issue More control over outages proposed Summer system reliability reviewed To address issues arising from the deadly mid-February winter storm which left about 4 million Texas electricity customers without service, some for days, Texas regulators on July 29 discussed potential changes to the Electric Reliability Council of Texas’ scarcity

Read More »

Inflation Numbers Giving Bonds A Bounce

Looking at a broader view, and this time by way of iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), we can see a well-formed base. The peak was last Thursday (and I mentioned we’d probably sell off some, given our relationship to the ascending channel) but I think we’ve burned off enough steam. I can see

Read More »
Energy.gov

DOE Announces Intent to Fund Direct Air Capture FEED Studies

Today, the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM), in collaboration with the Office of Nuclear Energy and the Office of Energy Efficiency and Renewable Energy’s Geothermal Technology Office, issued a notice of intent (NOI) for a Funding Opportunity Announcement (FOA) expected to support front-end engineering design (FEED) studies

Read More »

Get content like this sent directly to your inbox!

Follow OnceBurned

Share on facebook
Share on twitter
Share on linkedin
Scroll to Top