By Rich Hoblyn – Hoblyn Cutts
Recent events have unquestionably highlighted Gold & Silver as both commodities test new highs; the second term of Donald Trump (2.0), the economic decline of Europe (specifically the EU) and negative real growth, the deep Marxist ideology perpetrated by Keir Starmer in UK, the continual threat of China, the rise of the BRICS economies (formerly referred to as emerging, developing & frontiers markets), the impasse with a stronger Russia over a US infested Ukraine, the mass immigration issues imported through a warped WEF & UN agenda, all of these things and more. On a positive note there is a rise of traditional free economics exemplified by Argentina who seem to understand the importance of dramatically reduced red tape & regulation allowing for SME’s to breathe and prosper. Calls elsewhere for freedom are still being challenged by those with a globalist mindset. It seems anyone with any critical thinking prepared to challenge the top down approach of globalists supported by supranationals is deemed to be “Far Right”. Who knew ?
Throughout all of the above the growth of interest in precious metals, led again by the Chinese, is only superceded by the extraordinary growth and stampede into cryptocurrencies (cybercurrencies). One can’t help but think that they’re called Crypto for a very good reason. Maybe most of them will end up in a crypt somewhere decaying on the smouldering vanity pyre of the digital Ponzi that many financial observers think they’re destined for. It’s clear that the real value is in the blockchain and with this in mind Hoblyn Cutts are developing it’s own gold backed crypto. Details to follow.
The latest twist and turns in the Precious Metals market has seen an anticipated shift in physical demand towards USA vaults away from the dominance that London and the Bank of England has held for centuries, though arguably Zurich may beg to differ. As a reminder the dominance of NM Rothschild & the other ring members (now entrenched inside the LBMA) in regard to pricing (the Greenwich line continues to give London a distinct advantage though nano speed tech trading has certainly impinged on this). The reason for this surge in physical switching has a lot to do with the impending Comex futures problems in regard to satisfying margin calls. Up till recently the bullion banks have accepted US$ and even toyed with the idea of BTC Bitcoins but as London discovered in 1978/79 during the attempted cornering of silver by the Hunt brothers, the gold market today appears to gearing up for actual physical gold margin payments because of the lack of confidence and trust in western debt repayments. There are other reasons for the move of bars out of London; the distrust of Starmer’s Government, unauthorised lending by the Old Lady of Threadneedle Street, a lack of global transparency in regard to bullion ownership and a host of market reasons that it’s impossible to verify. With New York dominating Physical Metal ETF’s it’s clear that regulators might be preferring local custodians to those in UK & Europe.
My recollection from 1978/79 is that physical movement is expensive, time consuming, fraught with checking bar weights (often leading to further visits to a refiner) and security is paramount. The increasing length of time it is taking for the bullion to be moved from London to America doesn’t surprise. Delays are likely to get much longer.
So where is Hoblyn Cutts in regard to the prognosis for Gold and Silver ? Over the last 5 years or so an increasing number of new commentators have arrived on the scene and their forecasts and views will be covered in future bulletins here. Right now Hoblyn Cutts has a US$6,000pto target (under review) for Gold and believes Silver is heading to US$40 quite quickly. Longer term it would not be a surprise to see Gold reaching closer to US$10,000pto and Silver to US$70 per ounce.
THIS IS THE FIRST OF MANY COMMENTARIES ON HOBLYNCUTTS.COM
@hoblyncuttsgold & @hoblynkingGOLD can be found on ‘X’ (Twitter)
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Hoblyn Cutts are seeking a precious metals analyst to compliment the in-house team