How Gold Is Different


“In a recent comment, I wrote: ‘…it is one of the key differences between a Freegold understanding and the rest of the gold bug sphere. They all believe that the paper market is ultimately subservient to the physical side…’ I want to explain this in a little more detail.”

How Gold Is Different | BullionBuzzThis comprehensive article discusses supply and demand; gold as a FOREX currency; LBMA bullion banks, and more. In closing, the author writes:

“Paper traders essentially perform a paper arbitrage between different commodities and currencies based on expectations which are in turn based on past performance. It’s not perfect, but it’s why things we expect to rise together, like gold and silver for example, usually do. But when the paper gold market is suddenly terminated, there will be no way to arb the physical market with the rest of the paper trading arena, and that’s why nothing else will go along for the ride.”

“Okay, here it is. What you’ve been waiting for patiently, I presume. This is what gold will be freed from: The fractional reserve banking practice, which is a carryover from the gold standard. This is the free in Freegold.”


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