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How Musa's Gold Changed the World

By Philip HopfCommoditiesMar 22, 2021 15:44
uk.investing.com/analysis/how-musas-gold-changed-the-world-200464700
How Musa's Gold Changed the World
By Philip Hopf   |  Mar 22, 2021 15:44
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How Musa's Gold Changed the World 

Although we are today experiencing money flows, GDPs, and index quotations like never before in the history of mankind, the wealthiest person died almost 700 years ago and is still unmatched in his wealth to this day.  Mansa Musa, aka the Lion of Mali, made history with his unimaginable wealth. Whoever hears his name immediately thinks about masses of gold. It is somewhat ironic that Musa's name is the Muslim name for Moses, who was everything but rich in material terms. Maybe this symbolic connection to Moses gave Mansa Musa the strength to build such wealth and let his nation flourish under it. Under Mansa Musa's reign, the Sankore University in Timbuktu became a global hub of science and progress, hosting Africa's most extensive library after the library of Alexandria was destroyed centuries before. 

Ladies and gentlemen, yes, gold can be this impactful. Mansa Musa was able to alter the world economy during his pilgrimage to Mecca, as he was pouring out gold to the poor. Of course, nobody has that much gold today, but the current situation in the gold market should put a smile on gold investors' faces, who entered the market on the long side in the trading zone that we have indicated. Over the last week, the Gold price increased slowly but steadily. Now, it has left the trading zone and is ready to tackle quotation further up North. This is entirely in line with what has been predicting for a long time. The next step in our primary scenario is that the price also increases to move past the resistance line at $1764. Until this is safely the case, there remains a 40% chance that the price drops and turns into an alternative scenario. If that happens, the low at $1673 should be adjusted slightly by moving a bit down.

Nonetheless, we would expect the strong upward move to set in after that. Anyways, sticking to the primary expectation, we expect the price to correct above $1764 before the next resistance at $1879 is aimed at. All in all, investors in this market can be expect rising prices. 

GLD Technical Analysis
GLD Technical Analysis


Gold Mid-term Technical Analysis
Gold Mid-term Technical Analysis



Gold Long-term Technical Analysis
Gold Long-term Technical Analysis


Accordingly, the news from the gold price also implies positive things for the GLD (NYSE:GLD). Here, the course also gaining value and is strictly following our outlined scenario. The next mark that we expect to reach is $175.51. However, until we get there, we should be aware that here, too, an alternative course of action might evolve, which currently has a chance of 40%. That would mean a price drop would occur and solidify the low point somewhere around $153.67.

So, we somewhat follow Mansa Musa's footprints and continue to move up in the gold market. Our imminent next target is to overcome $1764. After a short correction, we should also tackle the $1879 mark. ​

How Musa's Gold Changed the World
 

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How Musa's Gold Changed the World

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Comments (2)
Manal Meyyappan
Manal Meyyappan Mar 24, 2021 7:54
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hai....is it to market 💯 per cent bullish
Brad Smith
Brad Smith Mar 22, 2021 22:42
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"NYSE:GLD" Philip Hopf, you seem to have some familiarity with this particular gold fund. I've spent quite a bit of time doing my due diligence into GLD. Would you happen to know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? The GLD managing organizations sure went out of their way to create this glaring audit loophole. What is the purpose of this loophole? Additionally, the GLD organizations promise that this fund is 100% backed by actual physical gold but yet they staunchly deny retail investors the right to any of their listed physical gold.  I remember there was a highly publicized visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities.
Brad Smith
Brad Smith Mar 22, 2021 22:42
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Note that even on the subject of GLD's insurance, they are not at all straightforward about it. Their representatives will not confirm nor deny the existence of GLD's insurance. I recommend anyone curious about this to confirm via calling GLD's publicly listed number for general inquiries at 866 320 4053 and ask about this clause from the GLD prospectus: "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." Exactly how much of the fund is insured? They will not give you a straight answer and might even throw in some bizarre excuse which I've experienced. Why hide this information from investors? The people behind GLD certainly do not seem like the most honest types.
 
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