Gold Price Rally is a Complete Mystery

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The rally is defying a lot of normal thinking, especially when it comes to still-elevated rates. I think the narrative is changing towards sticky inflation and perhaps a hard landing, spiced with a lot of geopolitical uncertainty and de-globalization driving central bank demand.

Ole Hansen
Head of commodity strategy at Saxo Bank AS
April 7, 2024
Gold price rally to record highs is a complete mystery | Fortune

I’m concerned it is not actually a mystery. I suspect it is a reality nearly everyone does not want to believe.


5 thoughts on “Gold Price Rally is a Complete Mystery

  1. Once upon a time there was a U.S. Army Intelligence Officer who saw the direction of government spending and had the foresight to know it was obviously unsustainable and further that neither political party had the will to fix the problem before it caused a world wide economic crash. He wrote an entire series of books about it and mobilized a generation of “survivalists”. His name was James Rawles and it appears increasingly likely the economic crash and war he predicted in his novels will occur sooner rather than later or not at all

  2. Well, if your dealing in dollars rather than actual gold. And want to draw in some sucker to give you his dollars?
    Your going to have to create market swings. Rallys and dips. The game has to be entertaining. It’s all about making someone feel special. Making them feel like they got something for nothing.
    If all I did was show you a chart of money creation vs. gold price? That would only work on smart people. Laborious and boring.
    But, get in on the dip today! The price ain’t going nowhere but up!!!! Don’t miss out on this exciting offer! Ain’t no different than going to an Indian casino somewhere. Ding-ding-ding, flash-flash-flash, more dinging!
    It’s all crap. And if they don’t know that, they probably have a masters degree in economics from Havard.
    The only nice thing about gold and silver is it doesn’t have a shelf-life like canned goods and ammo.

  3. The uptick in gold prices isn’t a mystery. It’s a response. A response to the loss of faith in the Dollar and the US Government. This isn’t complicated. Gold is historically always a thing of value. Fiat currency are ALWAYS debased and always eventually fail. The Dollar is no exception. Expect the price of gold to continue rising…for the foreseeable future. As long as the current policy of the US Government is to inflate our currency gold can only go up in price. Eventually the Dollar will be worthless. Just like the 1920s Reichsmark.

  4. Gold is probably a bad investment in normal times unless you think you can time the market. However, it is a good hedge against disaster in uncertain times.

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