Success in buying gold or silver shouldn’t be measured against steadily depreciating dollars. Rather, it should be measured in their ability to purchase real goods and services in the event of catastrophe. From Egon von Greyerz at vongreyerz.gold:
Since the October 2023 gold low of just over $1,600 gold is up but is anyone buying?
Well no, certainly none of the normal players.
Gold Depositories, Gold Funds and Gold ETFs have lost just under 1,400 tonnes of their gold holdings in the last 2 years since May 2022.
But not only gold funds are seeing weak buying but also mints such as the Perth Mint and the US Mint with its coin sales down 96% year on year.
Clearly gold knows something that the market hasn’t discovered yet.
RATES MUCH HIGHER
For the last few years I have been clear that there will be no lasting interest rate cuts.
As the chart shows below, the 40 year down trend in US rates bottomed in 2020 and since then rates are in a secular uptrend.
I have discussed this in many articles as well as in for example this interview from 2022 when I stated that rates will exceed 10% and potentially much higher in the coming inflationary environment, fuelled by escalating deficits and debt explosion.
Vlad and China are buying it up to withstand dollar weaponization sanctions?
This just in from Creedence Clearwater Revival:
Born On the Bayou