In 1922 the gold market was restructured to exclude ordinary investors.
It started at the Genoa Conference when Britain and the US persuaded the world that their banknotes were "good as gold."
A key move was to make the 400 oz 'Good Delivery' bar the international standard. These bars are too expensive and heavy for anything but institutional use. They weigh 12.5 kg and cost ~€1.53M last time I looked.
The image below shows 12,124 grams of fine gold.
Gold is flowing east. This proves the truth of Walter Wriston's famous saying: "Money goes where it is treated best"
China's official policy since 2004 has been 'Storing Gold With the People' … And buying patterns show that Chinese people buy vast numbers of 1 kg bars. Smaller units distribute wealth instead of concentrating it in institutions.
The image below shows 1,000 grams of fine gold. Current price €115,764.
For more than a century, the ever-expanding Western debt bubble has demanded that gold remained undervalued and misunderstood. The 400-ounce bar was designed to keep gold locked in bank vaults and out of your hands. Small bars solve that problem.
If poor households in India can save one gram at a time, any European or US investor can do the same.
The image below shows a one gram gold bar. Current price is around €118.
