🚨"The gold price appreciation over the past year has gone well beyond the moves implied by dollar and real bond yield shifts, and likely reflects the re-emergence of this 'debasement trade,'" JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Friday. Meanwhile, a record capital inflow into crypto markets in 2024 suggests that bitcoin is also becoming "a more important component" of investors' portfolios, they added.

👉 The debasement trade refers to a strategy where investors turn to assets like gold and bitcoin to hedge against the devaluation of fiat currencies, often driven by factors such as inflation, rising government debt and geopolitical instability.

🚨Overall, with both gold and bitcoin gaining structural importance, the debasement trade is here to stay, according to the analysts. Last October, the analysts expressed bullishness on crypto heading into 2025, citing factors such as the debasement trade and growing institutional adoption, among others.

Source: The Block

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🚨 🚨 According to Goldman, China Secretly Buying Up Massive Amounts Of GOLD, 10x More Than Officially ‼️ 

• According to the Goldman Sachs nowcast of central bank and other institutional gold buying on the London OTC market, October saw centralbanks buy a whopping 64 tonnes in October (vs. pre-2022 average of 17 tonnes), with China once again the largest buyer adding 55 tonnes, which is striking since the official number reported by the PBOC was one-tenth that, or just 5 tonnes. In other words, China is secretly buying up ~10x more gold than it admits.

• Commenting on the surge in purchases, the Goldman analyst writes that "surveys and history suggest that EM central banks buy gold as a hedge against financial and geopolitical shocks" and adds that "central bank purchases will remain elevated because fears about geopolitical shocks have structurally risen since the freezing of Russian reserves in 2022, and because relatively low gold shares in EM central banks reserves vs. DMs leaves room for growth." In fact, 81% of the central banks surveyed by the World Gold Council expect global central bank gold holdings to rise over the next 12 months, with none anticipating a decline.

🚨 As shown on the chart below, what is far more striking is the staggering (and growing) divergence between the modest amounts of gold purchases reported by the PBOC and the far greater amount China has actually purchased on the London OTC market, in a clear attempt to mask its staggering demand for the precious metal, and be extension, its diversification away from the dollar...

Source; www.zerohedge.com

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GOLD and BITCOIN

Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, predicts a global debt crisis driven by unsustainable economic policies. 

His advice? Move away from debt-based assets and invest in hard assets like gold and Bitcoin.

Once a Bitcoin skeptic, Dalio now acknowledges its value as a "gold-like asset" and a hedge against financial instability (while still emphasizing gold’s proven track record).

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