At the central bank level, gold remains money unless we find a broad industrial use for it…
Vince Lanci on Palisades Gold Radio
Tom welcomes Vincent Lanci back to the show. Vincent discusses the position of J.P. Mogan and Citibank, who hold a large gold derivative position. They’ve changed their balance sheet accounting methodology due to Basel III rules. Banks are going to take advantage of different countries regulations to arbitrage. The banks are in the same condition they we’re in previously. The gold dealer market has become smaller, and regulators seem happy to herd these derivatives into one large bucket. Smaller banks have exited out of the market.
Gold is a useless item, which is why it’s a great store of value. Money, including fiat, has no real practical purpose. At the central bank level, gold remains money unless we find a broad industrial use for it.
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