On Tuesday, yellow metal reached another target, $2,000 per troy ounce. Futures got to this level a few days earlier. But Tuesday can be considered the official day when this mark was reached in the forex market. What’s next?
It gets more interesting from here on out. In the two largest countries of the world, China and India, there is talk of banning or restricting possession of physical gold. In India, for example, gold is passed on from mother to daughter through the female line. It is considered an insurance policy against loss of the breadwinner (man). In this country, the possibility of declaring gold by individuals is being considered. And the payment of 30% tax.
It’s not enough that a third of all gold will be taken under this tax. So in the future, if the state wants to come for gold metal, it will know exactly who to go to.
Now let’s imagine what will happen in developing countries and countries of the 3rd world, when the price of yellow metal will rise to $ 3000. There will be even more people willing to take it away from them. After all, the price itself, in this case, does not talk about anything. In the markets “paper gold”, for example ETF is quoted. And if ETF owners or investors want to exchange paper gold for real gold, the market will collapse, with unpredictable consequences.
The major U.S. stock index is getting closer to its peak in February. It’s about 3% left. Of course the situation is absurd. The world economy is in ruins. And the US economy, even with these ruins, looks even worse.
But pumping stock markets with empty money continues to work. It is crucial for Donald Trump to keep the American stock market at high levels by the time of the election. The largest banks and investors are mostly supporters of the Republicans. And they don’t see any point in selling out stocks right now.
The most interesting thing will start as soon as the election results are summed up. If a Democrat candidate wins, everyone is waiting for a strong fall in the S&P 500 index. And in the case of Donald Trump’s re-election, markets may fall down amid profit taking.
What’s waiting for us today?
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