I love the chart below, and others like it. They force me to think outside of the…
…and consider reasons for what I see.
The reason gold is confounding to so many inflationists, who believe that you buy gold because… INFLATION!!!, is that the inflation is instigating rising asset prices of all kinds as funny munny (in this case USD) is being printed out of nowhere by the Federal Reserve and politicians are spending that newly printed munny, pushing rising costs into the economy. So far, it’s the more desirable effects of inflation that are most noticeable.
Copper loves it, SPX loves it, Global markets love it and even silver loves it. Interesting how silver is actually the most well correlated item to inverse USD lately.
Only gold does not love it. That is because gold is a monetary anchor against the chicanery. The chicanery is still in play and gold is still insurance against what comes next, after this inflationary feel-good phase (my guess is either stagflation or flat out deflation). Leaning stag, but staying open minded.
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