Tag Archives: gold bullion

As part of the sanctions against Russia, seven Russian banks have been cut off from SWIFT. We start by discussing what SWIFT is, and then the implications of completely cutting Russia out of SWIFT. What is SWIFT and Why Russia is Being Excluded SWIFT – The Society for Worldwide Interbank Financial Telecommunication is a messaging system that links more than 11,000 banks in 200 countries. The system doesn’t move actual money between the banks but...

In our post on August 11 titled End of an ERA: The Bretton Woods System and Gold Standard Exchange, we discussed the significance of then-President Nixon’s action of closing the gold window thereby ending the Bretton Woods Monetary system. Under the Bretton Woods monetary system, central banks could exchange their US dollar reserves for gold. This also ended the gold fixed price of US$35 per ounce. This week we explore the two questions that concluded last week’s...

Gold has not made new highs in many months. Gold peaked last year at US$2067 on August 6. The 7 month down leg of more than 18% as been deep enough and long enough that some commentators are now saying that the bull market has now turned to a bear market for gold.  Losing faith is understandable because falling prices feel bad. But this week we want to show that current prices may not reflect reality. We will review the story of Archegos Capital Management which...