You can’t eat the dollar and it doesn’t burn well. And when the sh!t hits the fan, they won’t be worth squat. Meanwhile, gold will still be traded.
As for why gold has gone up... That’s simple. It hasn’t.
After going from $800b to $1.8 trillion dollars in cash... The dollar is decreasing in value
if gold was at $700 an ounce before dilluting the dollar, then it’s only natural for it to double if the cash supplied is doubled. And that’s without adding in all the other stupid things the admin is doing.
Good point. Also the dollar index is down 5% vs other currencies so gold is really up closer to 5%. The S&P500 is up 9% and Nasdaq 10%, so gold being up 10% doesn’t seem to be bubbling over.
There is a lot of consumer hype surrounding gold, but even if 1 million Americans buy 10 ounces of gold per year, it’s still less than the European central banks sell each year.
Thus fewer than a hundred crusty Europeans can do more to artificially depress the price of gold than the hype of a million American “survivalists” can do to artificially raise the prices.
As long as governments keep printing money to pay the bills, gold will keep rising. The rise in gold will only be nominal, rising relative to the price of commodities and goods. The only thing that can stop this from happening is if central banks and governments ban gold altogether.
Very well put! I can agree with all that you wrote.