Gold in a low trust society.

 

There is a chart making the rounds of social media (X) showing how more governments around the world, East and West are selling USD Treasurys and replacing them with gold bullion bars.

The speculation is that the trust in US Treasury bonds, securities is fading fast and our allies and enemies are replacing them with gold bullion bars.

I believe there is a new understanding in market participants and investors that most governments will meet there responsibilitys by printing money and defaulting through currency debasement (inflation) or ouright default.

Our allies and enemies probably dont trust the US policy makers, government decision makers not to sieze their US assets domiciled in the US either.

I believe more North Americans also realize taxes on consumers maynot go up to meet government promices, like Social Security, Medicare, and other promises.

They also realize politicians will not be elected based on cutting these programs back, so now I realize the sacred cows argument. 

It seems most voters vote to steal and when they see no consequences for this they want it more before the whole thing callapses.

I would have thought there would have been an collapse in 2008 but there wasn't.

Thats why I believe so many people who have money and want to preserve there wealth and status keep buying gold.

Im not saying gold will go to 10K or 20K soon, I dont believe that but do think eith all these governments buying gold, that why there really hasnt been more of a sell off in gold prices and that there may not be.

I do believe even if gold doesnt go up much more people will buy it to use as collateral for low cost loans or as a way to store wealth even if it doesn't go up much, although it might go up a lot.

Im more inclined to think silver goes under 60 bucks an ounce and possibly 50 and that's where new buying comes in. It maybe the better speculation in the long run but I dont know. 

I think as trust in government promises goes down you may see more investment in time and money go into starting businesses and in commoditys for all this investment into teck and AI.

The traditional way of earning money will change over time and so will investments, with more people converting capital into personal online investments and offline businesses in commoditys and other things.

Anyway thanks for reading, good luck to all.