Why Is The Price Of Gold Going So High?

[Trump_is_Mentally_fit]

 

 

 

[The Frankish Reich]

This one is not arguable: a weak dollar is our policy.

And it is happening.

 

 

[All_Pro_Bills]

1 hour ago, Trump_is_Mentally_fit said:

 

 

 

There's been a confluence of events that have led to gold's rise. The confiscation of $330 billion in Russian central bank dollar denominated assets has facilitated BRICS and other central bank selling of dollars for gold because who wants to be next? The development of alternative trade and transaction settlement systems outside the dollar. Bi-laterial trade deals in local currencies. The inflationary spending policies of Biden, continued by Trump. Recently political changes in Japan impacting monetary and fiscal policies. European countries with empty wallets drowning in debt while pledging more spending on defense and social programs. Add in who knows for sure what's happening in China as they buy up most of the world's gold production. Buying from India. The US national debt approaching $37 trillion. The conclusion that the only way to resolve this is either outright default or inflation. Inflation it is.

[Trump_is_Mentally_fit]

1 hour ago, The Frankish Reich said:

This one is not arguable: a weak dollar is our policy.

And it is happening.

 

 

If, when?, the Supreme Court strikes down Trump's unconstitutional tariffs the federal government will have to pay back money it collected, roll the printing press! Gold will go even higher. 

 

If this was a Democratic Administration the right wing media would have the country in an wild uproad over this economic disfunction. 

 

if the court actually declares Trump has the power to unilaterally tax without the consent of the legislature our republic will be handed a big, big loss

[sherpa]

Gold's value in dollars or any currency illuminate an economic truth, as do real estate, stocks or any asset.

Those items are based on the value of a currency whose value is determined by governments with their fiscal policy.

Never a good bet to hold assets in a gov determined value. 

[The Frankish Reich]

Just now, sherpa said:

Gold's value in dollars or any currency illuminate an economic truth, as do real estate, stocks or any asset.

Those items are based on the value of a currency whose value is determined by governments with their fiscal policy.

Never a good bet to hold assets in a gov determined value. 

There are multiple factors in gold's rise. A quick look at the value of gold in Swiss francs suggests that about 1/3 of the rise in the price in USD is due to excess  inflationary expectations in the US. Gold is up YTD about 30% in USD, about 20% in CHF.

 

I have long had about 10% of my retirement portfolio in gold, so I'm (personally) happy, but generally concerned.

Laddered TIPS are also great, and I've shifted to about a 60/40 domestic US to international equities mix over the course of the year. Some International equities are seeing a boost from the dollar's depreciation.

[SectionC3]

Shelter.  Big money knows that rough eaters lie ahead.