Tuesday, July 3, 2018

Evidence is mounting that central banks are preparing for the end of the dollar by pegging their currencies to gold through the SDR

In a very interesting piece of analysis published recently by Dr. Jim Rickards, it is appearing more and more that the start of the recent bull market for gold in early 2016 is coinciding with central banks starting to peg their currencies to the price of that precious metal.  And in addition, these banks are using the SDR as the benchmark for this... meaning that not only are they expecting the SDR to soon replace the dollar as the sole global reserve currency, but that it will also now hold gold as one of its components in its basket of currencies.

Source: D. H. Bauer 
Here’s what DHB discovered. Before China joined the SDR, both the dollar price of gold and the SDR price of gold were volatile. After China joined the SDR, the dollar price of gold continued to be volatile, but the SDR price of gold exhibited much less volatility, especially after the first few months. 
Most importantly, the trend line of SDR/GLD is a near-perfect horizontal line.
In short, world money has now been pegged to gold at a rate of SDR900 = 1 ounce of gold. It’s a new gold standard using the IMF’s world money. 
There’s the GMR right in front of your eyes. 
It takes a while to sink in. Why did SDR/GLD go from normal volatility to no volatility overnight? The straight-line behavior of SDR/GLD after the Chinese yuan joined the SDR is impossible without some kind of intervention or manipulation. The odds of this happening randomly are infinitesimal. 
The SDR/GLD horizontal trend line after Oct. 1, 2016, is an example of what statisticians call autoregression. This only appears if there’s a recursive function (a “feedback loop”) or manipulation or if it’s presented as a fraud. This is how Harry Markopolos spotted the Bernie Madoff fraud; Madoff’s returns were too steady and consistent to be real given the volatile nature of capital markets. - Goldcore
As you can see from the chart below, gold bottomed out in December of 2015 and began a new move upward at the same time the SDR appeared to peg itself to the gold price in 2016.


However Rickards is not the only one to comment on the work of DH Bauer as GATA has also put in their own addendum to Jim's analysis.
Rickards writes: "In short, world money has now been pegged to gold at a rate of SDR 900 to 1 ounce of gold. It's a new gold standard using the IMF's world money. There's the global monetary reset right in front of your eyes." 
The charts contained in Rickards' letter are not reproduced in GoldCore's reprinting but they show the gold price measured in SDRs presenting a nearly horizontal line for the last year and a half. 
Of course if the gold price and SDR valuation are now locked together, this doesn't just mean that central banks are rigging the gold market. It means that every major central bank in the world is aware of and complicit in the rigging, likely preparing for another international currency revaluation, this time one in which gold is to be a major component, a revaluation that will change the value of all capital, labor, goods, and currency in the world. - Goldseek
What both of these agencies do agree upon however, is that betting on the dollar, yuan, or SDR is not the best haven of protection.  Instead Rickard's succinctly ends his letter by telling us exactly what will be the foundation of any currency reset or valuation that comes to pass...
"My advice under these circumstances is simple. Dump dollars, yuan and SDRs (if you have any) and get gold
That’s where the whole world is heading."

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