I remind myself (again) to not focus on the paper spot price of gold and silver. There is such a disconnect between the real world and the derivative world that Wall Street operates in.
The Basel III rules (85% real collateral) coming into effect at the end of June 2021 may be one of the reasons (along with the increased risk of being invested in paper gold and silver while vaults are being drained) why the bullion banks want so desperately out of their naked short futures paper positions. The international finance community is forcing this issue. In my opinion, the days of the COMEX setting the price of gold and silver with derivatives is coming to an end. The international community is preparing for the phase-out of the U.S. Dollar as the only world reserve currency.
CNBC talking heads keep mouthing the words "buy the dips." But again, I remind myself that it is very difficult convincing someone making money that they are doing it the wrong way. My friends kindly remind me how wrong, wrong, wrong I have been for the last 4 years and that my tin foil hat needs adjusting. The time of me being amazingly right is approaching.
The wealth preservation concept will be extremely important when the Mises's historic transfer of wealth takes place.
I am committed to the Austrian Economics and Exter Pyramid theories. There will be a point in time when algorithm sell programs will kick in to get out of the paper assets at the base of the Pyramid and into the hard assets at the tip of the Pyramid.
As I sit here today, what I am waiting for, over these past years, is the Greenspan algorithm programs to finally figure out that the gold and silver asset class is the place to be. Watching the financial elephant trying to get out of a room filled with Wall Street leveraged positions through a physical metal keyhole is going to be long-awaited vindication for me.
Good Luck trading everyone.