December 21, 2016

Once again, we return with a tale of two markets, which, if you've been following my writing for any length of time, you will know that I am referring to the physical gold markets and the paper gold markets.





One of these markets is vile, corrupt and an outright scam that keeps the other down and deludes people into a false sense of security. This, of course, is the paper market. The other, the physical market, is real, honest and reacts correctly in periods of turmoil and uncertainty.





Once again, these markets have diverged from each other as gold ETF holdings suffer a massive drop, plunging for 28 days straight.





The last day that holdings increased was the day that Hillary Clinton conceded victory to Donald Trump - an indicator that many are pointing to and stating that better times for the economy lay ahead, and therefore the safety of gold is not needed as much.





This, of course, is wishful thinking and flat-out incorrect. All around the world the demand for physical real gold is exploding, thanks to the draconian and corrupt governments in India and Venezuela, who are engaging in active economic warfare against their citizens and attempting to force them into an even more bogus, digital fiat system.





This has caused the demand for precious metals in India to surge even higher as people attempt to get their hands on anything real. In addition to this, demand in China is incredibly high and is showing no signs of slowing down.





Perhaps the West, under the Presidency of Donald Trump, will be able to slow the inevitable death of Western economies under this horribly flawed fiat money system, but that is all.





In the end, gold will return to rightful place as the linchpin of our money system and fiat will return to its rightful place in the trash bin of history. It is only a matter of time.







Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for. Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing. In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world. He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

The views and opinions expressed in this material are those of the author as of the publication date, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.