Loading ...Why Gold, Why Now ?
A question I’ve recently been asked. Cycle analysts have the answer. Asset classes of all sorts have a cyclical nature. The dollar is heading much, much lower in this cycle. I’m still aware of the small possibility of a final pop before the plunge, but I view that as a low probability. The gold cycle is doing its thing now. The chart below gives a rough and ready overview. Don’t take the gold projection too literally, but it works as a rough guide.
Thank you for that NS. Very helpful to see how cycles are playing a large role in the the evolution of gold. Its rise must have more to do with simply an appreciation of a depressed asset.
From a fundamental perspective, I am confused as to why you think the dollar is headed lower. It is measured against a basket of foreign currencies to get its value. Do you think the other currencies are stronger? The Euro? The Japanese yen? The Pound sterling? These are the top three currencies in the basket. They make up over 83% of the basket. The US dollar will be weaker than they will be? I don’t think so.
I agree KenS and that is what I have been saying BUT Gold has broken out in almost all those other currencies and that is good for Gold miners all around the Globe.
What is the currencies including the Dollar just keep pace with eachother give or take…no real breakouts but Gold goes higher
Thats what we’ve been waiting for
Not arguing that point Fully. Gold is going up for now. I was just addressing Nortstar’s point about the dollar.
The dollar is going down because of a huge FED policy error, 22 trillion debt mountain and the growing dominance of Russia, China and the Asian economy. The reserve currency will continue to lose its dominance. Gold knows this.
How far in debt are the other countries that make up the foreign basket of currencies?
Not as much as the US. That’s the issue here https://tradingeconomics.com/country-list/government-debt-to-gdp