Gold is still quite elevated by historical standards, even with the recent declines and the precipitous drop on Friday. The world is still in a very uncertain state verging upon perilous. In light of this, saying it’s tarnished for good is foolish. Saying any store of value is anything “for good” is foolish. Who knows what the future holds, that might send people screaming into precious metals once again? Flight to safety is a well-known effect of severe economic dislocation. That can have numerous causes. I tend to believe that the dollar strength we’re currently experiencing is flight to safety. Dollar strength can and does drive down the price of gold in dollars.
That can have numerous causes. I tend to believe that the dollar strength we’re currently experiencing is flight to safety. Dollar strength can and does drive down the price of gold in dollars.
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Its more than a flight to safety.
The US fracking revolution is printing many more real dollars than the fed is printing fiat dollars.