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Inflation + Islamic Buyers + Shanghai Exchange = Gold Price Catalysts

The Gold Telegraph  ( Original )
FEB 21, 2018

Inflation is on the way. Heck, it is already here. The recent CPI reading increase of 0.5% torched the expected advance of 0.2%. Which, of course, bodes well for the gold price.

Signs of impending inflation have investors taking another look at gold as the historically most reliable hedge against inflation. We could be facing a major gold bull market soon. This one will be quite different from the bull markets in the 1970s or the post-2000 market. An entirely new factor is being introduced into the global gold markets with potentially huge consequences.

It bears keeping in mind that the impact of the recent Sharia Gold Standard has barely begun to ripple out into the worldwide investment community. Islamic investment funds, heretofore barred from investing in gold, will be increasingly able to do just that.

This time, it includes the Islamic factor in the gold trade. One-quarter of the world’s population is Islamic, and investing in gold has been against Islamic law. This is changing, and one-quarter of the world’s population could be infusing the gold market with $3 trillion of investments.

And then there’s China, who with nearly everything they do, financial-policy-wise, seek to promote gold’s prominence on the world financial stage.

In addition, China has opened the Shanghai Gold Exchange. China has huge gold reserves and wants prices set in actual gold value instead of paper futures. Currently, for each physical ounce of gold, there are 252 ounces of contracted futures on paper. This could change drastically if China has its way, and it could create a gold bull market of historic proportions.

ORIGINAL SOURCE: Calm Before The Inflationary Storm at The Gold Telegraph on 2/20/18