As gold drops back from a peak of nearly $5,600 to back under $5,000 the Q. is:
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As gold drops back from a peak of nearly $5,600 to back under $5,000 the Q. is:
Is this a reversal of recent trends (throwing doubt on the safe haven argument) or just profit taking at the top of the market.
Much will depend on how gold 'performs' next week; if it settles above $4,500 holding the rise of recent months then the safe haven argument (and if implications for projection of global crisis) holds... but if it continues to drop back then one might look for other explanations.
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As gold drops back from a peak of nearly $5,600 to back under $5,000 the Q. is:
Is this a reversal of recent trends (throwing doubt on the safe haven argument) or just profit taking at the top of the market.
Much will depend on how gold 'performs' next week; if it settles above $4,500 holding the rise of recent months then the safe haven argument (and if implications for projection of global crisis) holds... but if it continues to drop back then one might look for other explanations.
@ChrisMayLA6 idk, the way our dictator is talking, and by what the big players at Davos were eluding to, manufacturing "coins" is their answer to fiat being tied to a precious metal, commodifying the destruction of the earth. Every token, a unit of measure representing the amount of the Earth's future destroyed to produce it.
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As gold drops back from a peak of nearly $5,600 to back under $5,000 the Q. is:
Is this a reversal of recent trends (throwing doubt on the safe haven argument) or just profit taking at the top of the market.
Much will depend on how gold 'performs' next week; if it settles above $4,500 holding the rise of recent months then the safe haven argument (and if implications for projection of global crisis) holds... but if it continues to drop back then one might look for other explanations.
DE is talking openly about bringing their reserves to EU; I think DK as well. Iirc, the last complete physical audit in the USA was a century ago.
It seems a perennial parlour speculation.
Canada announced an amazing mineral project yesterday, a new alumia deposit ~50% the size of all known reserves on the planet. Crickets.
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As gold drops back from a peak of nearly $5,600 to back under $5,000 the Q. is:
Is this a reversal of recent trends (throwing doubt on the safe haven argument) or just profit taking at the top of the market.
Much will depend on how gold 'performs' next week; if it settles above $4,500 holding the rise of recent months then the safe haven argument (and if implications for projection of global crisis) holds... but if it continues to drop back then one might look for other explanations.
@ChrisMayLA6
That size of a drop is too big to be the noise of profit taking, IMHO.A few analysts are pointing to the announcement of the nomination of the next Fed chair (Warsh). Bitcoin also dropped a significant amount; USD was up, oil was flat, tech was flat or down, the 30 year treasury yield dropped interday while the 10 year was flat.
Warsh is calling for lower rates (which IMHO means more stagflation in the cards, we've already had 2 years of it), which will help government debt yields not grow as fast but also spur inflation and spending.
Unless Warsh turns out to be another Volcker, which would be shocking but not the first time a hawk showed their true colors in a crisis.
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As gold drops back from a peak of nearly $5,600 to back under $5,000 the Q. is:
Is this a reversal of recent trends (throwing doubt on the safe haven argument) or just profit taking at the top of the market.
Much will depend on how gold 'performs' next week; if it settles above $4,500 holding the rise of recent months then the safe haven argument (and if implications for projection of global crisis) holds... but if it continues to drop back then one might look for other explanations.
@ChrisMayLA6 Gold is meant to be a safe haven because it holds a steady real world value regardless of inflation, currency fluctuations or whatever. But when it suddenly doubles or trebles in value it looks less like a safe stable asset and more like a volatile and speculative asset. It's gone shooting up, now it could just as rapidly come tumbling down.
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@ChrisMayLA6 idk, the way our dictator is talking, and by what the big players at Davos were eluding to, manufacturing "coins" is their answer to fiat being tied to a precious metal, commodifying the destruction of the earth. Every token, a unit of measure representing the amount of the Earth's future destroyed to produce it.
If you're worried about mining there are likely much worse mining operations to be worried about which is not to say the gold mining is in any way ethical or sustainable in environmental terms
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@ChrisMayLA6
That size of a drop is too big to be the noise of profit taking, IMHO.A few analysts are pointing to the announcement of the nomination of the next Fed chair (Warsh). Bitcoin also dropped a significant amount; USD was up, oil was flat, tech was flat or down, the 30 year treasury yield dropped interday while the 10 year was flat.
Warsh is calling for lower rates (which IMHO means more stagflation in the cards, we've already had 2 years of it), which will help government debt yields not grow as fast but also spur inflation and spending.
Unless Warsh turns out to be another Volcker, which would be shocking but not the first time a hawk showed their true colors in a crisis.
Hmmm... maybe, its quite possible the dip is over-determined, but I'd be waiting a week before drawing any longer-term conclusions
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@ChrisMayLA6 Gold is meant to be a safe haven because it holds a steady real world value regardless of inflation, currency fluctuations or whatever. But when it suddenly doubles or trebles in value it looks less like a safe stable asset and more like a volatile and speculative asset. It's gone shooting up, now it could just as rapidly come tumbling down.
Indeed, which is why its become (since the 1970s) a barometer rather than a hedge
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Hmmm... maybe, its quite possible the dip is over-determined, but I'd be waiting a week before drawing any longer-term conclusions
@ChrisMayLA6 not a bad idea.
In my opinion, the gold case hasn't changed fundamentally. Next week will show if this is a dip or a drop.
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