Gold, Silver & Other Commodities

The bull market in gold has been aided and abetted to a large degree by the weakness in the US dollar but, seen through the lenses of other currencies, the gold bull has been much less robust. Words: 956

Gold continues to face a strange combination of tailwinds and headwinds. Even as U.S. inflation rockets toward double digits, gold appears stuck in the mud. Why is it falling? When will it shine again?

This article looks at physical gold, silver, platinum and copper regarding their respective versatility of use, durability, fungibility, store of value, liquidity and aesthetics which will yield a new perspective on precious metals (including copper).

What's the difference between 1 troy ounce of gold and 1 (regular) ounce? What's the difference between 18 and 10 karat gold? What's the difference between a .75 and 1.0 carat diamond? Let me explain.

If you believe that the dollar is overextended relative to other currencies, and that a reversal could happen in the coming weeks and months, now may be a good time to accumulate gold, especially if you think we're in the midst of a recession.

The core idea of the crack-up boom, in summary, describes the collapse of a monetary system, due to out-of-control inflation expectations by the market participants, that were in turn caused by extreme increases in the money supply.

Investors should consider today’s prices a gift and perhaps a last chance to acquire gold at these prices before the real safe haven race begins. Gold is so cheap right now, it’s practically a steal.

Gold should be soaring with red-hot inflation raging but, instead, it is breaking down but gold’s bizarre decoupling, driven by a parabolic USD surge fueling unsustainable heavy gold-futures selling, is an extreme anomaly that will prove short-lived.

After two years of declines, many investors sold their gold holdings and vowed never to invest in gold again. However, in the fall of 1976, gold began an ascent that saw it rise 750%, peaking at $850 a troy ounce three years and four months later. After a 3-year correction, the same opportunity to buy low exists today, just as it did in 1976.

The price of gold will never outrun the cumulative effects of inflation. This means that the higher price for gold is offset by the dollar’s actual loss in purchasing power.