War on Gold: Bullion Banks Not The Enemy Anymore

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Authored by GoldFix ZH Edit

With Gold on All Time Highs UBS’ Chief Investment Office puts out a report saying gold is too high while simultaneously saying it will hit $2,250 in 2024.

That same day, DB also puts out a report saying Gold is too high short term. Two days later that same bank puts out a 2024 report in which they state Gold is going up.

JPM also tells clients this rally is too much too soon, after having said 2 weeks prior gold was going up in 2024. There are other analyses we have not seen for sure.

A contradiction? No. Gold was short-term overbought and long term a buy.  The commentary was actually spot-on.  We are now in the Bullion Bank Zone.

The Bullion Bank Zone

Are the Banks lying? Not likely at all. They are trying to keep some integrity1 and do right by their customers, while making money for themselves (the Broker-Dealer model) and simultaneously dealing with Central Bank obligatory interference.

Bullion Banks always serve two masters, American Capitalism (their P&L) and Collective Bureaucracy in the form of Central Banking. When those masters’ interests align, Gold always goes down. But we just saw  two Sundays ago what happens when those interests do not align. It is not pretty as we saw that evening Dec. 3rd.

Incidentally, that night was a glimpse of true price discovery. If metal is continually throttled from flowing east while increasing price is slowly transmitted to the west,  you will see more of those glorious moments.
While the transmission of Western pricing decreases in effectiveness, the transmission of Eastern demand exerts more influence. It is harder to keep price down when the buyer wants the physical metal. The SGE and the Comex are a proxy war for USD dominance.  Banks are just profitably in the middle.

"Selfish" Capitalists versus "Bigger Picture" Socialists

When push comes to shove, the capitalist bank trader wants to make money. If that is because Gold is going up, then they will be long Gold- as some have been for months!

But when Gold going up upsets the bigger2 picture (Central Banker) types, those traders cannot ignore the call. Banks were definitely called Sunday night. Somebody was not happy.

So, hate the Bullion Banks if you must. But, know this market has turned from bear to bull. Bullion banks ultimately will not be the enemy. The G7 Central Bankers however, always will be, as long as Fiat exists.

What’s The Point?

GoldFix readers knew what the banks would write *before* it was written. We predicted as much 8:55 p.m.Dec 3rd Sunday night as it was happening.

“Then what are you doing?” one may ask; Taking the opportunity to point out a kind of mission GoldFix is on.

For years we have studied not just markets, but player behavior themselves in times of crisis.3 We give the information and analysis to make *you* less concerned with day-to-day price action by showing (when we can) true market drivers. You stay out of harm’s way and preserve/grow your wealth. That's the idea

The Advice Now:

Be bullish if you like, but Buy-Season has run into a brick wall. And while every bullion bank in the world is buying dips (at what depth noone knows) which will result in much higher prices over the next 5 years (because they see it as well) speculating on another new All Time high  between now and January 1st is going to be difficult.

Final Comment:

You cannot keep grass roots demand in Gold from driving this market higher. You can, however slow its ascent. Gold is going up. Truly we wish our members the best. Spread the word