A Closer Look at HSBC’s New Gold Token

For over a decade, GoldSilver has championed the truth behind inflation — a truth now gaining recognition across mainstream media. A recent Forbes article echoes what Mike has long warned us about: the figures we’re shown barely scratch the surface of the true effect of inflation.

In another groundbreaking development, HSBC’s announcement of a new tokenized gold coin for investors in Hong Kong signals a potential revolution in gold investing. Is this a new era of gold investing, or merely a mirage reminiscent of paper gold investments?

We’ll dive into these topics and more in this week’s Nuggets. Let’s get started!

New Study Suggests Gold Standard Could End Price Volatility

Researchers from the Federal Reserve Bank of Philadelphia published a study in February that says adopting a gold standard could lead to long-term price stability. According to their findings, prices would naturally align with their long-term equilibrium, making inflation and deflation temporary issues.

Gold Prices Climb As High As $2,224 per Ounce

Throughout the week gold has traded between $2,150 and $2,200, before climbing to new all-time highs Thursday, driven by possible expectations of interest rate cuts by the Federal Reserve later this year. Traders are currently pricing in a 64% chance of a June rate cut, according to CME’s FedWatch tool.

U.S. Consumer Optimism Climbs to Highest Levels Since July 2021

U.S. consumer sentiment has hit its highest peak since July 2021, fueled by the bull run in the stock market and the hopeful anticipation of dwindling inflation rates. The University of Michigan’s latest report reveals an impressive climb in the sentiment index to 79.4, up from 76.5, marking the largest mid-month leap in confidence since August 2022.

Fed’s Operating Losses Grew to Record $114.3 Billion in 2023

According to audited financial statements released Tuesday, the Federal Reserve reported an unprecedented operating loss of $114.3 billion in 2023, halting its payments to the Treasury due to high interest rates. The Fed’s interest expenses surged to $281.1 billion, driven by costs related to reverse repo operations, while its income from assets was $163.8 billion.

Why Traditional Inflation Reports Fall Short

For years, voices like Mike Maloney’s have warned thousands about the silent erosion of our purchasing power. Today, as the pain of inflation becomes impossible to ignore, more voices are joining the chorus Mike has been leading for years.

A recent piece from Forbes sheds light on one of the fundamental flaws in how inflation is traditionally reported. The focus on a mere 12-month snapshot obscures the true, cumulative impact of inflation, especially in light of the unprecedented monetary expansion during the Covid crisis.

“The cumulative 20% inflation rate means it now takes, on average, $120 to make a comparable $100 January 2020 purchase.”

What this means in plain terms is alarming: What cost $100 in January 2020 now demands $120, effectively reducing your purchasing power to just 83 cents on the dollar. The 12-month inflation rate is often published as 4%, and that doesn’t sound too bad. Over the last four years, however, cumulative has reached 20%.

For those whose incomes haven’t sprinted ahead at the same pace, this oversight isn’t just an inconvenience — it’s a widening gap between preserving wealth and losing ground.

That’s why it’s more important than ever to take your personal finances into your own hands and shield your wealth from the erosive forces of inflation.

A Closer Look at HSBC’s Gold Token

This week, HSBC dropped some big news: they’re bringing gold into the digital age for everyday investors in Hong Kong by tokenizing it. This could be a game-changer, making HSBC potentially the first bank to blend blockchain with real gold in a way that’s aimed right at folks in the retail market.

But before investing, let’s take a step back and read the fine print.

Enter Mike and Alan, our seasoned skeptics, who scrutinized the HSBC’s Principal Brochure to learn all the details about this new gold token. Turns out, there’s some extremely unsettling caveats right on the first page…

“You should note that investment in the Product is not the same as acquiring a physical gold bar…”

“Investors will not have the ability to take physical possession or delivery of the gold at any point even in the case of insolvency of the bank…”

“Suspension of dealing may be imposed by the Bank…”

In their latest video, Alan and Mike dissect these points one by one. Consider it a heads-up to keep a healthy dose of skepticism when it comes to digital tokens, IOUs, or anything that smells like “paper gold.”

These digital promises might sound convenient, but they’re missing the solid reassurance you get from holding real, shiny gold bullion in your hand.

Watch Alan and Mike’s latest video, where they break it all down, and get the facts for yourself.