While monetary commodities like gold and silver continue to set new daily records in terms of their dollar price, it’s interesting to note that the dollar prices of non-monetary commodities like oil and copper continue to slide. That’s probably because economies tipping into recession don’t need as much oil and industrial metals as growing ones.
Gold prices rose by over 2% on Monday, buoyed by expectations of further U.S. interest rate cuts and sustained safe-haven demand, as investors awaited upcoming U.S.-China trade talks and inflation data out of the U.S. this week.
But zero percent interest rates ought to fix all those problems, right?
Meanwhile, traders are pricing in a 99% chance that the Federal Reserve will cut interest rates next week, with another cut in December. Gold, a non-yielding asset, tends to do well in low-interest rate environments.
Gold was around $2000 CAD in 2020 and now its over $6000 CAD, Silver was around $30 and now its approaching $75, so that’s how much our dollar has devalued in 5 years. If you go back 10 years when The Turd(TM) took power, Gold was around $1300 and silver was under $20 an ounce.
Theoretically we only have 25% of the value of our currency that we had before, and people wonder why a pickup truck that cost $25K in 2015 costs close to $100K now. Gold and Silver didn’t really go up, our dollar was devalued by the Gov’t fiscal policy, or non policy.
Buckle up, the ride might get rough, partly because the money spent on road repair and infrastructure is shrinking, but mainly because we are FUBARed.
Dow up +515 today
Nasdaq up 310 today
S&P up 71 today
Investments in actual THINGS people need to live. I can and have lived without gold quite well for 70 years. It’s nothing more than wampum. Shells on a necklace. Ohhhh … but super rare shells.
When it comes right down to it, the most valuable metal is lead.
Gold = Silver = Paper Dollars.
When there is nothing to buy……
The only thing saving the US dollar is every other country (except Switzerland) printing money as well.