Do you think gold is about stability?

1. Who benefits from the fall of gold $PAXG $XAG

Main beneficiaries:

• Financial institutions and large banks:

If a bank has a long-term gold procurement plan (for example, for a year), a price drop allows them to buy more metal for the same money. A price increase is disadvantageous for them as it raises the cost of procurement.

• The dollar and the USA as a system:

Gold is often seen as a protection against dollar depreciation. If the US dollar is strong, gold prices fall, which is beneficial for the USA — their currency strengthens, debt obligations decrease, and managing global liquidity becomes easier.

Mechanics:

• Banks and funds can collectively 'dump' their positions, creating temporary pressure on the market so that the price adjusts downwards to a level favorable for purchases.

• Sometimes this is done through futures, ETFs, or derivatives (e.g., PAXG, GLD).

2. Who benefits from silver

Silver is a more industrial metal than gold. Therefore, its 'beneficiaries' may differ:

• Industrial companies (technologies, solar panels, electronics):

They benefit from a low price — production costs are lower, making it easier to plan purchases for the year.

• Investment funds trading precious metals:

Just like with gold, they can short silver if they expect a decline, and then buy it back cheaper.

• Central banks and US financial institutions:

Sometimes they use silver as a hedge against inflation or market regulation.

3. Why banks want to buy

• Strategic reserve: if a bank plans to have X tons of gold/silver by the end of the year, a price drop makes purchasing cheaper.

• Hedging against inflation: the cheaper the metal, the lower the risk of overpaying for long-term asset protection.

• Coordinated market influence: large players can partially manage the price through derivatives to land in the desired range.

4. Why a price increase is disadvantageous

• Disrupts the purchase budget: if it was planned to buy metal for $1 billion, and the price rose by 10–15%, they lose the opportunity to purchase the same volume.

• Reduces potential profit on subsequent sale or use in production (for silver).

• Increases pressure on dollar assets if gold rises faster than the dollar, especially for the USA.