Gold

This week, we'll look at a long-term chart of Silver/Euro with reasonable optimism that a very large move higher is in its future.

The price of gold in euros has just broken an all-time record! An ounce of gold is now worth €2,300, double the price it was five years ago. Gold is soaring while oil is plummeting. Meanwhile, the Chinese economy is slowing at a rate not seen since the last financial crisis.

Gold is world-renowned for its physical properties, but it is also in great demand for its financial qualities. Most of the world's major asset managers and central banks hold gold, while a large proportion of the public remains unaware of the benefits of the golden metal. In financial theory, go...

With the acceleration of the dollar’s (and other currencies) debasement and shift in Central Bank reserves out of dollars into gold, the revaluation of gold in coming years will be by multiples.

Against the stagflationary backdrop and the start of a new cycle of defaults in the United States, gold is logically attracting new buyers.

A saver who bought and sold gold at any time between January 1, 1999 and January 1, 2024 would have grown richer on average at an actuarial rate of 8.69% per annum.

It has been more than a year since we last looked at the Dow/Gold ratio, which at the time was threatening to break down from a very large bear flag. This week, we'll update those charts and see that the expected breakdown has indeed occurred as anticipated.

The gold price, with its string of record highs, tells us that we are on the verge of seeing the detonator of this new inflationary phase. Gold is warning us that we are on the brink of another Fed monetary policy error.

Quantitative easing (QE) stabilizes the economy during times of crisis but exacerbates inequalities by benefiting wealthier households more, while the purchasing power of the middle and lower classes stagnates or declines.

Confirmation of a recession, triggered by an increase in defaults in the country, heralds gold's future outperformance of the classic 60/40 portfolio. This is probably when gold will begin to attract Western investors in a significant way.