Gold is only bought when there is a lot of cash in the streets and people have more than they need. Gold has always been a terrible hedge, and always underperforms cash equivalents in the long-run, when compared to equities, you'd be better off buying boulders and putting them in your yard for resale in a decade than buying gold.
This guy is dead wrong. Maybe even lying. It’s due to the oil shock and countries left suddenly scrambling to obtain oil, oil that they need to buy with usd. So they need to sell assets like gold to build sufficient usd holdings. Fed rates don’t affect gold price but inflation does.
Rapid high inflation will cause a recession. Then Fed will have to cut interest rate. Trump was actually right because he is a visionary while powell is not.
You are completely wrong here. A lot of countries are selling their gild reserve for oil. The biggest example I can think of currently is turkey that has sold large amount of its good reserve for oil recently
Propaganda. The sold Gold bc its liquid and easy to sell!! Weak hands are closer to being shaken out cpmpletely than not. The monetary situation across the globe is RIDICULOUS
Welp, if things continue to progress as they have, food will be worth far more than gold. Cuz we're not going to have any, if we don't have fuel or other infrastructure to grow or move food from farms to cities!
Nobody in there right mind considers a rare shiny metal that can be used as a jewelry as a investment 🤷♂️ it’s something that national banks has a traditional backer for the currency and some cultures with low trust, high corruption and weak institutions like India uses as an investment and a jewelry, because the government and institutions can’t be trusted. So if you live in a similar culture yes it has relevance, else a jewelry a wedding ring. It speculation not investment.
Or just that this is the result of massive manipulation ?
The idea that gold goes down because people are scared of inflation so the fed keeps interest rates level is such bunkum.
Gold has always been acknowledged as the hedge AGAINST inflation as it maintains its buying power as currency over the long term. Whether interest rates are three or four percent is meaningless if inflation is running at five or ten percent or more as happened during COVID because that interest doesn’t even cover the depreciation of the value of the fiat currency that you hold.
These “pundits” make up some explanation after the fact, and most of the time it doesn’t even make sense. Rare is the economist who actually does make sense, like Varouvakis. The rest of these people are snake-oil salesmen.
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Seems bad
So should we invest in gold or not ?
I’m gonna wait for it to bottom out this time and buy up.
MAGA can't deliver
🤔
They sold gold and bought oil.
Its on sale. I suspect we will see 10K / OZ in our lifetime.
interesting
If you pronounce it like "eye ran" your opinion should be eye relevant
Wrong. Its market price manipulation. It is the paper gold that being sold. 39T unpayable debt is red alert !
Gold is only bought when there is a lot of cash in the streets and people have more than they need. Gold has always been a terrible hedge, and always underperforms cash equivalents in the long-run, when compared to equities, you'd be better off buying boulders and putting them in your yard for resale in a decade than buying gold.
Well well. The famed WSJ has forgotten one reason out of the few elaborated therein.
It's an important one!
And, that is why, I stopped buying gold last year.
This guy is dead wrong. Maybe even lying. It’s due to the oil shock and countries left suddenly scrambling to obtain oil, oil that they need to buy with usd. So they need to sell assets like gold to build sufficient usd holdings. Fed rates don’t affect gold price but inflation does.
Gold will go up again, even higher
"Paper contracts" are indeed not a perfect hedge play, but physical is.
Gold is never a bad idea for long term
Rapid high inflation will cause a recession. Then Fed will have to cut interest rate. Trump was actually right because he is a visionary while powell is not.
Narratives follow price, not the other way around
GOLD Is done, will dump slowly towards $3500
Grannies that sold their jewelry before the peak made a killing. Gold buyers that bought gold by borrowing are in it deep.
You are completely wrong here. A lot of countries are selling their gild reserve for oil. The biggest example I can think of currently is turkey that has sold large amount of its good reserve for oil recently
Still up loads ya flid.
Russia the Gulf States are dumping gold to pay for war damages, costs for weapons.
Propaganda. The sold Gold bc its liquid and easy to sell!! Weak hands are closer to being shaken out cpmpletely than not. The monetary situation across the globe is RIDICULOUS
Considering only rich can afford it. I hope it bottoms out to zero.
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Welp, if things continue to progress as they have, food will be worth far more than gold. Cuz we're not going to have any, if we don't have fuel or other infrastructure to grow or move food from farms to cities!
Gold is just as Fiat as the Dollar or a Labubu. It has value because people say it does.
Nobody in there right mind considers a rare shiny metal that can be used as a jewelry as a investment 🤷♂️ it’s something that national banks has a traditional backer for the currency and some cultures with low trust, high corruption and weak institutions like India uses as an investment and a jewelry, because the government and institutions can’t be trusted. So if you live in a similar culture yes it has relevance, else a jewelry a wedding ring.
It speculation not investment.
Why not index funds over gold always? 10-11% > 6-8% returns
The Dollar’s back, baby! Oil is Green again. Say the truth and shame the devil.
In 3min he said one sentence. That is what constipation looks like
They sold gold for liquidity. Gold is a good hedge in the long run.
Or just that this is the result of massive manipulation ?
The idea that gold goes down because people are scared of inflation so the fed keeps interest rates level is such bunkum.
Gold has always been acknowledged as the hedge AGAINST inflation as it maintains its buying power as currency over the long term.
Whether interest rates are three or four percent is meaningless if inflation is running at five or ten percent or more as happened during COVID because that interest doesn’t even cover the depreciation of the value of the fiat currency that you hold.
These “pundits” make up some explanation after the fact, and most of the time it doesn’t even make sense.
Rare is the economist who actually does make sense, like Varouvakis. The rest of these people are snake-oil salesmen.
😂😂😂😂