Why gold prices haven’t changed and what should investors expect next?

Why gold prices haven’t changed and what should investors expect next?

“I still view gold primarily as a savings investment. This is money in its simplest form. Banks and governments are failing, fiat currencies have always been a joke, and the upcoming central bank digital currencies (CBDCs) are criminally dangerous and arguably the worst innovation in history. Anyone who does not have a significant part of his fortune in gold coins will be an unfortunate tourist.

But, firstly, gold is not an investment. Investment is the distribution of capital that creates new wealth. This is not the nature of gold or any other commodity.

Sometimes gold can also be a great speculation. Since it was untethered from the dollar in 1971, it has had some spectacular upswings. But first of all, it is a means of salvation. I’ve been buying it since it was about $40 an ounce. I just accumulated more and never liquidated. I got good results because they went from $40 to $1650.

This is good speculation during currency and economic crises, because it is the only financial asset that is not also someone else’s liability. There is no need to rely on the good will of the rulers. Rather, one can automatically benefit from the fact that they tend to be incompetent and dishonest.

In a world heavily in debt, where governments and central banks have gone bust and are printing trillions worth of their national currencies, owning gold is more important than ever.

The world is completely burdened with debt. And right now, central banks are raising interest rates in a futile attempt to dampen the effects of money printing. Of course, they can also inadvertently trigger a deflationary credit collapse. The world is on the edge of an economic abyss. The Fed has been the most aggressive in this regard. That’s why the world buys dollars. Most of the world’s debt is denominated in dollars. These relatively high interest rates, while still very negative in real terms, put a lot of pressure on borrowers. I suspect that interest rates will continue to rise, almost regardless of what these fools do.

Borrowers desperately need dollars to service their debts, while savers need dollars to sustain higher interest rates. This is the reason for the strength of the dollar. This is a bit of a paradox. The dollar depreciates in relation to real assets by 10-20% per year; is the rate of currency devaluation. However, the dollar is extremely strong against all other currencies because the world needs the dollar to service its dollar debt. A huge distortion is created.

That is why gold has shown some weakness. But that doesn’t bother me because I expect gold to be monetized again in the next few years.”

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