Commodities

It’s Not Too Late…To Become A Gold Bug

Gold continues to move higher and closed at its highest level since 2013. 

With the stock markets showing signs of bearishness and with losses in U.S. stocks and drop in Treasury yields, money continues to pour into gold.   For example, July saw the biggest inflow of capital into gold-backed ETFs in 2019.

Because we live in an equal opportunistic society, everyone is trying to get into the action or capitalize on it.

Gold bars fraudulently stamped with the logos of major refineries are being inserted into the global market to launder smuggled or illegal gold, refining and banking executives tell Reuters. The fakes are hard to detect, making them an ideal fund-runner for narcotics dealers or warlords.

Four of the executives said at least 1,000 of the bars, of a standard size known as a kilobar for their weight, have been found. That is a small share of output from the gold industry, which produces roughly 2 million to 2.5 million such bars each year. But the forgeries are sophisticated, so thousands more may have gone undetected, according to the head of Switzerland’s biggest refinery.

“The latest fake bars … are highly professionally done,” said Michael Mesaric, the chief executive of refinery Valcambi. He said maybe a couple of thousand have been found, but the likelihood is that there are “way, way, way more still in circulation. And it still exists, and it still works.”

Source

FUN FACT – Gold weighs approximately 19 times as much as an equal volume of water. A sheet of gold can be made thin enough to be transparent since it’s very malleable. That’s why pure 24 carat gold is usually mixed with other metals in jewelry for more durability.

However, one doesn’t have to worry about fake bars if they invest in GraniteShares Gold Trust (BAR) . It’s an Trust that seeks to reflect generally the performance of the price of gold and among the lowest-cost, physically-backed gold ETFs on the market. Being physically backed is important to some investors. The Trust holds physical gold bars in a secure vault in London that is inspected twice per year, so one can sleep better at night.

Just like Gold, buy BAR on pull backs because the chart suggests, it’s going much higher.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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