US stock markets are all at record highs, gold at an all-time high and silver at its highest price since 2013. Welcome to the market where everyone wins, no craps.
Congratulations to the silver, copper, gold, S&P 500, Nasdaq, Dow and US housing bulls?
Did I forget something?
A record for gold
Gold’s strongest move in a year came as the dollar was rising
Gold and the US dollar are not as inversely correlated as is commonly believed. Sometimes gold and the dollar move strongly in the same direction. Let’s discuss why.
On April 11, 2024, I noticed Gold’s strongest move in a year occurred when the dollar was rising
Gold’s strongest move in more than a year began in March, with the U.S. dollar index generally higher.
Gold against the US dollar
Summary of Gold versus the US Dollar
Contrary to a widely held myth, gold is not a good hedge against the US dollar.
With the US Dollar Index at 90, gold is at $380, $1,000, $1,130 and $1,900.
And there are times when gold and the dollar rise together.
When does gold do best?
In general, gold is a poor hedge against inflation. The best example is that gold fell from $850 to $250 an ounce with inflation at every step.
In the mid to late 1990s, everyone thought “The Maestro”, Alan Greenspan, had everything under control. In such times, gold is one of the worst assets to hold.
It is best to think of gold not as a hedge against inflation, but as a hedge against credit stress, stagflation and confidence in central banks..
Is everything under control?
Hello Jerome Powell. Sorry to ask, but we need to know: is everything under control?
It seems to me that the distinctive message coming from many markets is that things are not under control.
To discuss this, please see What is the connection between gold, climate change, Bitcoin and the Fed?
Mr. Powell, please comment on the chart above that I posted on March 7, 2024.
On April 5, I noted Millennials rush to buy $2,300 gold bars at Costco
“Neither party will solve the deficits. Neither side will do anything to combat the growing debt. Nobody will do anything because the political system is totally broken.” mish
This is the message of gold. Bitcoin supporters would also say Bitcoin.
Looking for another place to buy gold from a reputable price?
Please take a look at Bullion Star.
For proper disclosure, I have an affiliate relationship. This doesn’t affect the price you pay but it helps me a little. The link above contains my affiliate code. At Bullion Star you can buy grams of gold and silver as well as ounces.
Confidence in central banks
The market does not believe that everything is under control.
Me neither.
News Source : mishtalk.com
Gn bussni
