Gold is the topic of conversation on every financial news program. Both Wall Street and Main Street are growing increasingly optimistic. After recently rising from about $1800 to $2000, gold is currently significantly retreating to $1985 in order to preserve gains. 8 Reasons to Believe Gold Will Keep Rising:
- Look how well gold has done in the face of an extremely strong dollar. For most of my precious metals career, a strong (or very strong) dollar is a death nail for gold
- Gold doesn’t pay interest. You can now easily get 5.5% on your money in short-term treasuries. Anytime in the past when cash returns “good” yields, it has been bearish for gold, yet it is only $85 off its all-time high in USD terms.
- You may not know that gold is today at an all-time high against ALL major currencies around the world – it has already broken out from previous highs
- Central banks are buying gold in droves while simultaneously expanding their monetary base through printing. Maybe they know something???
- If the Fed continues raising the Fed funds rate, they risk breaking the bond market. Smart money has finished shorting bonds. We might see another 25 basis pt rise in December, but the consensus is that’s the last. The Fed may or will have to pivot if the economy shows overt signs of cracking. Gold will rise when interest rates fall (treasuries don’t look so attractive).
- If inflation remains elevated, gold will do well
- If our proxy or direct entry into these world conflicts (Israel, Gaza, Lebanon, Iran, Syria, Ukraine / Russia, China / Taiwan, and whoever is next) continues, gold will do well. REMEMBER: We have a very myopic view here is the U.S.. But what if you lived in the Middle East, Asia, the former Soviet Union, or Argentina (what a disaster), where would you put your money? In the local currency or gold?
- Gold is private. Christine Lagarde, President of the European Central, is now rolling out a CBDC. Transparency in – Freedom and privacy out.
