Gold crosses new high this week at 2,878 per oz
A 200 year old bubble
Risk with gold is American policy. If the US govt creates an official Bitcoin reserve - then gold will automatically lose its "gold standard" of value storage. We will see more and more countries shift away
I was sitting in a long, slightly dull meeting at work yesterday.
I pulled up the live gold chart on my laptop while pretending to pay attention to whatever it was the fellow across the table was saying, and marvelled that the little non-yielding coins in my safe at home had 'earned' more than I had through labour thus far that morning.
I pulled up the live gold chart on my laptop while pretending to pay attention to whatever it was the fellow across the table was saying, and marvelled that the little non-yielding coins in my safe at home had 'earned' more than I had through labour thus far that morning.
For 2,950 years of the last 3,000 years, holding gold would have been seen as the lowest risk, sanest of investments. They would have regarded fiat currency, where there is simply no limit to how much a king or government could create, would have been the insane asset to hold.
And when you look at the price of gold in any fiat currency you choose over any reasonable time frame, you will see that it is the "fiatbugs" not the "goldbugs" that are the ones who should be sectioned.
And when you look at the price of gold in any fiat currency you choose over any reasonable time frame, you will see that it is the "fiatbugs" not the "goldbugs" that are the ones who should be sectioned.
Why is gold rising now?
1. Geopolitics
2. Inflation - expected to be high due to trade wars
2. Inflation - expected to be high due to trade wars
Youve ignored the real reason. US debt is at crazy levels. US will print money to pay off the debt. Printing money = inflation. And when that happens - only gold saves
China has bought 8 million ounces of Gold over the last 2 years. China held 65 million ounces of gold and now its at 73. In Jan alone - 160K at $2811 per ounce
Gold has compounded in $ terms over the past 25 years at give or take 10% a year. This is because real interest rates have been negative as Central Banks, led by the Fed, have aggressively bought their government's debt and have created money to do so.
The greater the overall government debt is, the greater is the incentive for Central Banks to keep doing this. Gold related assets currently make up 1/2% of total investment portfolios. This is likely to move back towards a more normal 2.5% over the next 10 years and gold will therefore continue to steadily gain in value.
The greater the overall government debt is, the greater is the incentive for Central Banks to keep doing this. Gold related assets currently make up 1/2% of total investment portfolios. This is likely to move back towards a more normal 2.5% over the next 10 years and gold will therefore continue to steadily gain in value.
JP Morgan was right: Only Gold is money and everything else is Credit. And this is unfolding right before our eyes though FT authors deny to see it as clearly yet.
US might revalue its gold reserve to market prices and strengthen balance sheet, lower debt cost. If they use that to buy Bitcoin (and sell Gold) - that will be interest