Around this time last year, looking at and overlaying charts of interest rates, exchange rates, gold price and us debt. Us debt and the gold price had a very strong correlation. I had a target for gold to hit $2900 usd/oz before i started selling down gold stocks.
Well, we sailed past $2900. The us debt story is only looking worse with no real end game besides more debt insight. Given the larger debt and increased bond rates it looks like us debt will grow exponentially. It is hyper inflation in slow motion.
Gold price has grown 100x in usd over 50 odd years (since peg to usd stopped)
even if trade talks improve, the trust is gone.
I cannot see a path forward without higher gold prices.
which western 1st world country doesn't run on a budget deficit?
everyone loves finger pointing at trump and the usa, but no one is any better.
Trump/musk are trying to address the elephant in the room and are having the best crack at it then any previous and likely future administration will.
their modest improvement is ultimately a fail.
if the system continues with us debt continuing to grow, then gold grows modestly
if the system FAILS then goes parabolic
I think we're on a bumpy road and the us will hop between the status co & the brink of failure, which will cause spikes in the gold price , only to pull back to trend ounce the dust settles.
regardless where the gold price goes, I cannot see a better place to store my cash in the foreseeable future
GMD Price at posting:
$4.34 Sentiment: Buy Disclosure: Held
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