The actions by the Federal Reserve over the past year have led many to assume that much higher inflation is a foregone conclusion. This leads to a further expectation that a much higher gold price is imminent.
The correct definition of inflation is “the debasement of money by government and central banks“. The effects of inflation show up in the form of higher prices for all goods and services.
After decades of concerted effort by governments and central banks, the focus away from gold as money has led to its characterization as an investment, a hedge, insurance, etc. Some still refer to it as a barbarous relic. Are any of these...
In a previous article I wrote: “Looking at this chart, it should be apparent that gold at $2000 is fully-priced. Unless you are convinced that the US dollar is going to crash soon, then expectations for much higher gold prices at this...
Janet Yellen said the following last week… “It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat” Later that same day, she said this…
Let’s start by defining hyperinflation… “Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services,...
In other words, how much is gold really worth? If we believe that gold is money, then we likely will have a different opinion or expectation than someone who sees gold as an investment; or someone else who deems gold to have no useful...
The expectation for a much higher gold price resulting from huge money creation by the Federal Reserve is shared universally by investors, analysts, and others.
The Fed wants to have their cake and eat it too, but the cake is stale. Jerome Powell’s remarks in testimony before the Senate recently provoked considerable attention.
The US dollar is the world’s reserve currency. That isn’t likely to change anytime soon. All currencies are substitutes for real money, i.e. gold. And because all governments inflate and destroy their own currencies, any potential...