If you are betting on gold, you may be in for some tough sledding. Below is a 5-year chart of the yellow metal updated through Sep 3, 2021…
You wouldn’t know that by listening to current commentary about inflation. Casual observers, economists, investors and analysts seem to agree that “higher inflation is being generated by abnormally huge amounts of government spending”.
The rise and fall of gold stocks is a story of hurt and disappointment. That is because most of the time gold stocks are in decline.
Both gold and crude oil peaked at all-time highs in 1980. Those highs are still intact when the effects of inflation are accounted for. Below are the charts for both gold and crude oil…
Since the origin of the Federal Reserve in 1913 the US dollar has lost ninety-nine percent of its purchasing power. Not coincidentally, but in direct reflection of the dollar's loss in purchasing power, the price of gold has multiplied one...
The actions by the Federal Reserve over the past year have led many to assume that much higher inflation is a foregone conclusion. This leads to a further expectation that a much higher gold price is imminent.
The correct definition of inflation is “the debasement of money by government and central banks“. The effects of inflation show up in the form of higher prices for all goods and services.
After decades of concerted effort by governments and central banks, the focus away from gold as money has led to its characterization as an investment, a hedge, insurance, etc. Some still refer to it as a barbarous relic. Are any of these...
In a previous article I wrote: “Looking at this chart, it should be apparent that gold at $2000 is fully-priced. Unless you are convinced that the US dollar is going to crash soon, then expectations for much higher gold prices at this...
Janet Yellen said the following last week… “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat” Later that same day, she said this…