Real Purpose for Delivering Gold Back| KOL Forex Analysis•Jasper Lo

Some reports suggest that more than 15 countries (includes Germany, Netherlands, Australia, Italy, France, Switzerland and Russia, etc.) are going to deliver gold back from the U.S. and U.K. According to some analyses, these countries are preparing for de-dollarization and hold a vote of no confidence in U.S. dollar. But from my point of view, these analyses are somewhat farfetched. They didnt throw light on the real purpose of gold return. In fact, such action is not fresh at all, instead there were several cases over the past decade, in which no one ever claimed de-dollarization at that time.

I have drawn an analogy in a recent speech about investing, that is, when common people withdraw their gold ware and gold jewelry deposited in safes, do they lose confidence in the banks providing safes？ They do so first for banquets wearing and second for more cash flow (cash out by sell-off). As COVID-19 dealt a crushing blow to most economies, some countries have to use forex reserves to stablize their exchange rates and economics. To this end, I suppose these countries are very likely to sell some of the gold holdings amid the spike in gold prices.

During the European debt crisis, Cyprus indicated it would dishoard gold for more cash in April 2013. Hit by the news, gold prices tumbled to $1,180 from $1,600, with sell orders being as much as 400 tonnes, which further punished gold prices. Therefore, the declining dollar, de-dollarization and return delivery for gold are separate matters that cannot be confused.

Conversely, with so many countries delivering gold back home, it will not be a surprise if some of them following Cyprus to sell gold for survival. Investors should stay cautious at every step and be alert against the last or even wrong trading track as prices of gold and silver just spiral down because of the large sell orders at the record high. In terms of experience, it is implied that gold markets, like stocks, will turn around in extreme upbeat.

[About The Author]

Since 1987, Jasper Lo has been engaged in the financial industry

(forex, futures and gold) for more than 32 years and holds forex R.O.,

securities and futures broker licenses. Mr Lo is an expert in trading

forex, precious metals and commodity futures and an basic and technical

analyst.

Over the years, Mr Lo won many individual and team sales champion

awards, as well as outstanding employee awards. He was invited, as a

guest mentor, to the University of Hong Kong, Guangdong Ocean University

and Guangzhou Jinan University. And he was also appointed as the chief

training consultant by Hantang Securities and Dongguan Securities in

China.

Mr Lo's experience as guest of honor invited by media including Chinese and English newspapers and columnist:

-Guest of honor invited by TVB New Channels such as Finance Channel, Forex Focus, Global Watch

-Guest of honor invited by Now Finance Channel - Forex Reports

-Guest of honor invited by i-CABLE Finance Info Channel - Forex Opportunities

-Guest of honor invited by ViuTV - Investor Smarter Group

-Columnist of Finance and Forex Market of Ming Pao

-Presenter of Finance and Forex Forecast of Ming Pao

-Presenter of Investment 36 Stratagem and Technical Analysis in 1 Min of Ming Bao Finance

-Appointed lecturer of Ming Pao Investment Seminar and Paid Course

-Author of the best seller Investment 36 Stratagem

-Columnist of Forex Expert, Forex Analyst, Marathon Weekly of ET Net

-Guest of honor of Open Good Morning of ET Net

-Guest of honor of Metro Finance Channel - Market Opening, Instant

Market Fighting, Guangdong-Hong Kong Finance, Finances Power, Market

Analysis

-Guest of honor of New Era of Investment of RTHK

-Columnist of Capital Commodities of Capital Weekly

-Guest Presenter of Wang Guanyi Online Finance Channel - Fund and Commercial Bond

-Columnist of Wealthub Finance and Investment Smart Platform of Enrich Culture

-Guest presenter of Weekly Investment in the World of Enrich Culture

WikiFX,

a third-party forex broker inquiry platform, has collected the

information of 19,000+ forex brokers, 30 regulators, and helped victims

recover over 300,000,000.00 USD. WikiFX App provides functions like

forex brokers inquiry, calender, forex news express, calculator and

other trading tools to help you get trading done with ease.

Forex

brokers inquiry: in order to create a safe forex trading environment,

WikiFX offers you two methods of checking the compliance of forex

brokers, online checking and offline investigation report. WikiFX has an

independent inspection team, conducting on-spot visit to brokers

offices to identify they are trustworthy or not.

Forex calender: the financial events which may affect forex trading

Forex news express: providing you the latest info anytime and anywhere

Forex