🇨🇦 Back in 1965, Canada was at the peak of its gold reserves. The country held a cool 1,023 tonnes of the precious metal, worth the equivalent of $1.15 billion USD at the time.
In 1980, the government started selling those reserves, deciding there were "better ways to store wealth". By 2016, it had sold off all of its bullion and coins.
To visualize, if you were to melt and mold that 1,023 tonnes of gold down, you would get a solid cube measuring 3.76 meters on each side.
Today, it would cost approximately $65.6 billion USD to purchase that amount on the open market.
This remains the most important macro chart of this decade.
Parts of this investment thesis are already playing out:
▪️The growth to value transition
▪️Failing 60/40 portfolios
▪️Commodities supercycle
▪️Peak cheap energy prices
▪️The bursting of speculative
▪️Expensive Tech stocks being re-rated
These trends are all interconnected with the idea that monetary conditions are too tight for financial assets at these valuations but too loose for secular inflationary forces.
Palladium broke below yellow level 1821 a while ago and was with that a sell. It is now close to the next big support level 1301. It has a good looking, bullish blue falling wedge, with a somewhat sloppy backtest at probable lows.
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