It’s a smart move. Bond yields are so low as to be either flat or negative when adjusting for inflation. Globally debt levels have never been higher and central banks are cranking up the printing presses. Here in the US Trump is once again pressuring the Fed to print more money.
Inflation often comes when you devalue your currency.
“Hedge against inflation”
That, among other reasons. Gold in hand can’t be frozen by sanctions, like dollar-based accounts could be.
Also gold can be untraceable wealth for elites to flee with, or conduct malign activity.
You can’t eat rocks.
rwood
gold crossed $1500@oz. I expect gold to be $2000@oz by year end.
Small cap gold stocks are going insane the past few weeks.
I said in a few posts that gold would DEFINITELY go past 1500 and I think it will cross 1650 this year.
I just didn’t expect it to cross 1500 THIS WEEK!!
14 trillion dollars out there earning negative interest in the world and the tariff issues with China as well as more rate cuts to come could send gold to 2000 again next year.
Even once an agreement is made with China, it won’t be long before they break it and and land in trouble again.
I believe eventually Trump will be successful with China but it won’t be fast and it won’t be easy.
Like some of my ex’s :)