Gresham's law is an economic principle that states 'when a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.'
Notice the 'sea change' that occurred with Shanghai gold flows starting in 2013. And notice how the Western financial media views this phenomenon. China Savers Buying Gold As 'Rest of the World' Exits The 'Rest of the World' apparently does not include India, Russia, Turkey, much of the Mideast, and the European central banks who have been busy trying to repatriate their gold from New York and London. A few central banks have disgorged quite a bit of their gold, such as the UK which sold at the bottom, Brown's Bottom it is called, presumably to rescure some bullion banks who were caught short. I have included a chart showing 'Silk Road' gold consumption below. In addition to all the wealthy individuals in the US and UK who are buying it for their own private vaults. Who are the idiots who own most of the gold in the central bank crowd anyway? The numbers are a bit hard to come by because for some reason the bankers are notoriously secretive in response to questions. The 'official gold reserves' of all central banks in the world is also included below. And the biggest goldbugs are the US, Germany, Italy, France, the IMF, Russia, China, Switzerland, Japan and the Netherlands. What has some of the NY and London banking crowd so worked up? What have they done now? Do these fellows take us for complete fools? Really?
