Gold Isn’t Rising
Here is a barometer…
As a weather forecaster I use them quite a lot. The barometer is constant, but the atmosphere around it changes (the air pressure goes up and down). The barometer just sits there and measures it.
Here’s a gold coin…
as a PM watcher, I use them quite a lot. The gold coin is constant, but the financial atmosphere around it changes (FIAT money is being constantly created). The gold coin just sits there and measures it.
One MASSIVE difference. The global atmosphere is on a ‘gold standard’. It’s a closed system, with no net gain/loss. This means that the atmospheric pressure can only fluctuate between a fixed low and a fixed high. The global financial climate is totally different. As long as it’s possible to manipulate our currency, with no fixed reference point, with constant money ‘creation’, there is only one limit to it’s value – ZERO.
Lets see how our gold coin ‘barometer’ is measuring FIAT money around the world…
Just look at the Japanese Yen – it looks like something massive is brewing there. New all time highs in AUD, CAD, INR. GBP close to new all time highs, and the others have all broken out of their respective basing patterns. Make no mistake – This is a global event. It’s unfolding right in front of our eyes, and the implications are profound. Gold isn’t rising. It’s just sitting there, doing what it’s always done. Global finance is under extreme stress. Banks are on the brink of collapse. FIAT monetary systems are showing signs of fundamental problems. This could end up being much worse than many are expecting.
I like “articles” like this.
The Barometer might be heading towards Stormy. Or maybe Tornado.
The whole thing since 1980 especially in Japanese Yen is looking like a kind of giant cup and handle. The Japanese love tea but I don’t know if their cups have handles.
Good points NorthStar.
I’m warming up to the possibility gold and the dollar may rise together.
Perhaps a really hard gold backtest is coming to scare out the bulls and then up?
That’s a possibility PC. The Dollar up/gold up scenario is on my radar too.
“The Dollar up/gold up scenario is on my radar too.”
May I ask why? I believe your charts and indicators point to the dollar falling. Add in the dollar’s 15 year long-term cycle which I believe last bottomed in the low 70’s back in 2008 and we’d expect to be falling now into another dollar bottom arriving in 2023.
I’m bearish on the US Dollar CT, but keeping an open mind. A broken Dollar Cycle would surprise me, but nothing is impossible
Great Analogy Northstar
The Pressure is rising !
It is indeed, and with nothing to stop it unless FIAT creation stops.
Great thought piece, to start with.
And as for FIAT creation … you mean NET creation.
Many of us are watching DB, and Italian banks.
And we know there are inter banking links, but we don’t know how tight.
So if/when we get the next Lehman, the battle will be “on”.
How fast can they paper over the resulting fiat destruction?
In a financial world where mutual trust evaporates?