Savings

The next big run in gold is much closer than the majority of investors seem to believe.

Recent rises in inflation have plunged the continent into an unprecedented stalemate: the farmers' protest movement is mainly attributable to the consequences of this general decline in purchasing power recorded in Europe over recent quarters.

Chinese investors are abandoning their own stock market and seeking exposure to growth in the US and Japanese markets. Gold could be sold in the short term in a deflationary wave, but it would also serve as the ultimate refuge for international investors disappointed by a stock market they believ...

This week we will look at Gold's price as a series of large ascending channels that will provide a framework for where price could go by the end of the decade.

The latest U.S. inflation figures are well above predictions. The consumer price index (CPI) rose by +3.7% year-on-year in December. Inflation appears to be accelerating, exceeding the pace recorded at the same time last year.

Inflation takes off at around 4% in Japan, a significant level for a country which, apart from the 2014 surge, has generally recorded inflation rates close to zero, or even negative, since the turn of the century.

The total mismanagement of the US financial system has led to the dollar losing 98% of it’s value since Nixon closed the gold window in 1971. Most other currencies have followed the dollar down at varying speeds.

Gold prices anticipate the shift in the investment cycle from growth stocks to tangible assets. The yellow metal also benefits from its safe-haven status in a context of economic uncertainty.

With many political elections due to take place in 2024, the economic and financial outlook is likely to tip the balance for better or worse.

Egon von Greyerz and Matthew Piepenburg take a sober look ahead at a macro environment riddled with undeniable event-risk—from geopolitics and asset bubbles to debased currencies and distrusted global leadership.