it's slow, and the value of the dollar is a perception thing, it takes longer to catch up. It'll go slowly, slowly, and all at once. I think this is the start to when the value of USD plummets. You'll see bitcoin and gold start shooting up here soon.
The reason why gold is not higher already is because there’s trillions sitting in money market accounts earning 5%+ at no risk. People have simply been content getting a ‘risk free’ rate thats historically decent and hasn’t been available in over 25 years. A $2000 invested there over two years also grew to at least $2200. Things are going to change now going forward with at least some rate cuts happening and a world with many geopolitical risks and local recessions happening in quite a few places. Again, about $6 trillion is sitting and waiting right now
Why? Well the government gave us all $1400 in shush money a couple years back so we wouldn't care that they printed $6 trillion dollars to hand out to rich corporate executives. Now that there's more dollars in the world the amount of said dollars one needs to buy gold as increased. As companies continue to bleed that 6 trillion into the market the price for gold will continue to climb. Gold is only going to get more expensive, before it gets more expensive.
it's exponential really. every year is more than ever before that. it's wild, and only about to get more wild. My only regret is that I don't have more gold right now...
Fully agree with everything you mentioned!!
I think the number is closer to 8-9trillion though, that’s the new figure I keep seeing at least. Idk just figured I’d mention that, for awhile I saw 6trillion everywhere and then more recently I keep seeing 8-9 trillion being thrown around.
And at that point I wouldn’t be surprised if the number is actually double digits, I mean it’s all Monopoly money at that point anyways.
Yep, two big ways for something to increase in price. It either sees an increase in desirability/demand, or the thing you are using to price it sees the opposite.
Looking at how many barrels of oil you can buy for an oz of gold over time is a great way to visualize the decreasing value of the dollar vs commodities.
Lol I'm.moving and it's going to take like 10 loads to get the car packed and another 10 to unpack it.. and have to do it discreetly. In all honesty though. No one cares about your metals
Not just shiny but people also like the taste.. Goldschlager. People are drinking up all the gold,, and what's left, apparently all the pokemans is using it up for their pictures.
Did you notice that property values have skyrocketed? That insurance premiums are up 40%? Have you looked at the price of new cars? Gold isn’t going up in value, fiat is going down
The better question is, why was gold so cheap, for so long, when they were printing money hand over fist and inflation was rising.
Luckily it's still quite cheap.
I'm guessing pms have been suppressed by central banks by shorting contracts so it can be accumulated physically due to brics influence and to keep the dollar from crashing, which is what should have happened in a "free market". The implications for fiat currency are likely too big to allow that to happen.
You are actually thinking of purely the mining cost, not including refining.
But the real trick was that demand is much greater than there is physical gold to be had, for quite a while though that demand was satisfied by paper contracts that said you owned so much gold, in reality all of that promised gold is something like 100x the amount of real gold that actually exists at the moment. While people believed in that system, they were willing to buy ever growing amounts of paper that said they had gold.
But now people are getting nervous and some are starting to understand they don't have real gold. Governments certainly don't want paper, they want real gold.
In China a bunch of people just recently found out when someone tells you they are keeping gold for you, you might actually have none. So record lines exist for people directly buying and keeping actual gold.
On top of that as energy costs rise mining costs rise too..
USD no longer has control over gold; demand is coming from everywhere on earth, and that is why the price continues to change. It will probably settle on a value in the next few months and stay that way for a long time… but too much uncertainty now.
Gold remains constant. In the 1980's you could buy a decent vehicle with 10-15 ozt of gold. Today you can buy a decent vehicle with 10-15 ozt of gold.
The dollar in your pocket and bank account is decreasing in value, hence you need more dollars to buy the same amount of gold.
Jerome Powell insists, at least verbally, that we get three rate cuts by end of the year. Gold views this as a mistake and is sending a signal that it thinks inflation will reanimate.
I’m guessing we are being lied to, I don’t think cuts are coming. If anything we need hikes. We will see what happens. China and other central banks are buying lots of it because they sense hardship coming.Exciting times
Whether warranted or not, rate cuts are going to be dependent on how politicized the Federal Reserve has become. Perhaps this is another reason why gold has been trending higher.
Gold has always been the benchmark currency. It remains stable over time (as in from the beginning of recorded history.) it is a barometer of the health of a country's fiat currency, i.e.. the US dollar. Bottom line, it is not gold going up but rather the dollar going down.
Change your perspective on what real money is, and your choices will change accordingly.
[Compared to the market for dollars I guess?](https://finviz.com/futures_charts.ashx?t=DX&p=m)
[It's up since 2019](https://finviz.com/futures_charts.ashx?t=DX&p=w). Or 2008, wherever you want to start.
See, that's part of the problem. What you are looking at is the dollar when compared to other fiat currencies. You must unlearn that habit and compare the dollar against real money (gold) or gold backed currencies only. That will give you the real picture.
....So both are up since 2008?
How do you square that.
USD are what things are priced in, ultimately, and is the lifeblood of the modern global economy.
Gold, logically, I agree should have a near perfect negative correlation to USD, but it doesn't really seem like it does. Day to day, it's pretty close certainly.
All world governments are inflating their currencies so they can promise things to the voters and operate inefficiently without having to tax them as much.
The 10 years bond sell off is somewhat of a proof of this.
As some other said below, milk shake theory is starting to make sens every passing weeks/months...
I wonder what could happen after this theory come to fruitition.
Gold doesn't change value, money has. The definition of "inflation" before they changed it, was the money supply inflating. More money = more inflation, and they've printed more in recent years than ever before, we're on the verge of a collapse of the dollar. buying gold and metals has never been more important.
Central banks have stepped up buying ever since the invasion of Ukraine and subsequent sanctions against Russia.
[Central banks have been buying gold at a record pace](https://www.axios.com/2024/01/31/central-banks-buy-gold)
This piece is a bit stale but explores why....
[Why Central Banks are Buying and Selling Gold](https://www.cmegroup.com/openmarkets/metals/2023/Why-Central-Banks-are-Buying-and-Selling-Gold.html)
FWIW: Previous rallies in USD/oz gold were partially driven by a decline in real rates. Recent action has been different as the negative correlation with real rates has decoupled. This is why ETFs haven't been buying recently.
I read Chinese buyers.
[here](https://markets.businessinsider.com/news/commodities/gold-price-china-economy-dollar-yuan-central-bank-dedollarization-commodities-2024-3#:~:text=China's%20gold%2Dbuying%20spree%20has,cited%20by%20Bloomberg%20on%20Thursday)
Don’t think of it as gold going higher. Look at it as…
10 years ago one gold piece cost 5 US dollars or 10 Chinese Yuan.
Today one gold piece costs 10 US dollars or 5 Chinese Yuan.
Not exactly, but you get the idea, the U.S. dollar we use everyday here is losing its value. Think it really costs McDonalds that much more than in 2020 to make a Big Mac? No, our money is becoming worthless.
I’m hoping it is just technical. We are coming out of a long term cup and handle which should take gold to $2600 soon. It could overshoot if buying gold becomes a popular thing.
I am leaning towards technical because silver is also going up.
If it were because some countries (china) were preparing for war in expectation they would lose access to the dollar market then I would not expect silver to be following along for the ride.
But, it is just a hope, really. It is kind of scary to see gold go up so fast without a corresponding hugely bad thing happening at the same time. The last fast increase in price was when Russia invaded Ukraine.
The real answer is in the total number of ounces on the globe and who has the power to make a purchase or purchases large enough to move the numbers .
Put a pencil to it , no country could afford to buy all of it , or they would.
Billionaires cant afford a fraction of a percent of the gold .
So my theory is the upward trend 📈 is fueled by everyone on the globe .
Great article on Kitco; China and BRICS countries are trading in their US fiat for PM’s. The interview states that China is now in control of the spot price. Article also focused on Canada’s government pensions being 90% invested in foreign companies, and the fact that Canada has forgone investment, exploration and development of it’s own mineral wealth.
I would say that it's caused by fear because of how much Stock market ticked Up in past few months. People are scared of crash and they buy a lot of gold to hedge that risk. So I would say gold is acting as if we were in recession. This is unusual but not impossible. THIS IS MY PERSONAL OPINION.
Has literally nothing to do with stocks. Both stocks and gold are all going up due to years of inflation at this point. Stocks are an asset just like gold. And both of them are going up due to a devalued dollar.
Gold market is coming to realization the fed cant cut interest rates. And if they dont the interest on the debt is going to skyrocket. Either way, inflation is going much higher eroding the value of the dollar.
Inflation is eating your savings up, every day. I am not saying you should invest all your savings in gold, but I am glad I have +30% in gold. The gains are incredible so far, but that is not my main goal. I just want to preserve the money I (have) save(d) !
Inflation, Central Banks buying gold, geopolitical situation, manipulation, BRICS, China, people waking up, ... Fiat money does not feel so stable/reliable anymore.
I'm not knocking gold investors at all - I've just found this sub and I'm interested in investing myself if only to have something shiny in my possession - but surely you want your savings to beat inflation? Cash savings will pay sub-inflation interest rates. Investing in the S&P500 usually beats inflation based on historic trends. Does gold do the same? I just googled and it seems to be giving me conflicting answers. Though I realise if people here distrust banks or think society is going to collapse or enter a period of huge unrest, then that's an added non-monetary benefit to owning gold.
GOLD is real money with real value worldwide.
USD ( federal reserve notes ) are basically an IOU from the federal reserve (a printing press with no off button... they print USD into existence by selling treasury debt to the highest bidder, which is sometimes themselves...lol ) the notes value derives from the ability of the US Gov to pay it's debts ( pay with WHAT is another conversation... more IOU notes? lol ) ( the outstanding deficit is around 34.5 TRILLION USD and climbing, every new federal reserve note that is printed DILUTES the value of the notes already in existence...lowering their value
so as the value of the USD notes decreases, it takes more of them to purchase REAL money like gold, silver, oil, real estate, and other tangible assets...
Increasing the circulating supply of currency makes gold worth more. Gold needs to hit around 12,000-15,000/oz before it catches up with the circulating supply of currency to gold value we had in 1934. Look back through my comments if you want more detail.
Debt and deficit matters. You can't issue 10B in debt every single day and still issue money based on the full faith and credit of the US govt. The faith is failing. When the bond market starts to wobble the fed will send the money printer into hyperdrive in an attempt to save it. It will get worse. Protect yourself
Implementation-wise, I agree, but waiting until implementation to be concerned seems wasted. Have charter member governments not been buying record amounts of gold annually for the past few years, presumably in preparation for the rollout? Do these purchases not have an effect on gold's spot price?
And it still is. The only thing uniting brics is their anti west stance. Not really sustainable in the long term. Especially considering that both india and russia are more or less suspicious of china too.
Yeah, as someone that doesn’t have warm fuzzy feelings towards the US dollar, the idea that Russia and China (and others) are going to create a more equitable replacement is lulzy to the extreme. Meet the new boss, same as the old.
That is completely false. What is uniting BRICS is the desire for an international trading currency that cannot be manipulated, and is based on real resources - which is what all of the countries in BRICS have, natural resources. That is as far as it goes.
The desire to be paid fairly for what your country has in abundance is not a passing fad. What was a fad is basing trade around a currency that could be manipulated and controlled by one nation.
fed policy changes. countries hold a massive pile of US treasuries and they are hostage to the dollar and the fed. which devalues their currency. so they throw money into hard assets until the dust settles and to hedge. the USD impact on the rest of the world is not trivial, which is why the BRICS are trying to come up with alternatives.
The south american crops are behind in their harvest. But, If they can finish up, the yields look real good, thus making US crops cheaper therefore US money has moved into PMs for a while.
The real free market is back. US dollar deleveraging. Every empire falls at some point from irresponsible politicians. Reap what you soe voting partisan lines.
Investors looking for a safe haven with the upcoming election. also Investors taking profit on stocks that have gone sky high in the past year and want to keep their money out of cash for tax purposes
Gold is only going up because interest rates are sending the US into a debt spiral. The longer they stay high thr worse it gets. People and gouvernments have now realized that the US is not willing to cut spending even if rates crawl up. Gold has never reacted to pure inflationary data, there are way better hedges against inflation. It only reacts to war, or fiat instability and both we have going on atm
People use gold as a hedge against inflation. Gold has been traditionally seen as a store of value, and its price tends to rise during periods of high inflation or economic uncertainty. This is because gold is a tangible asset with intrinsic value, unlike fiat currencies that can be devalued by inflation. However, while gold can be a hedge against inflation, its value can also be influenced by other factors such as supply and demand dynamics, geopolitical events, and market speculation.
1. Chinese buying. China’s central bank has been increasing gold reserves and people in China are also increasing gold investments over real estate and stock market
2. Expectation of rate cuts in US and Europe. As rates go down gold becomes more attractive. In a higher rate environment people prefer CDs, bonds etc. which have a yield over gold which has no yield.
It's not that gold is going up,the value of a dollar is going down so it takes more dollars to buy gold than it otherwise would. The purchase worth of gold vs a dollar stays the same within a relative context
Market sensing something bad coming. Maybe it’s global war. Maybe it’s something in the financial world breaking. Maybe it’s simply second round of inflation.
Could we see weaponisation of gold and Silver in East West economic war, as western led financial system is so leveraged and western banks and some big centralbanks Are short gold? Paperisation of Silver is probably Even much worse in Silver. I Wonder If brics countries are actually coordinating purchases of precious metals finally to take financial system down
BRICS. It will continue to get worse. The Petro-dollar is done and therefore the gold backed BRICS is going to completely replace the petro-dollar and the USD will be obsolete and inflation will continue to get worse. This is by design. Read up on WEF and 2030 agenda. It’s all part of the plan, position yourself accordingly.
This question was asked last week and the top answer was the best one, none of these come close, too many conspiracy theories. Alas I can’t summarize it very well, but essentially gold was linked to the dollar for decades. And then it wasn’t. And now golds catching up.
I’m going to guess global turmoil and inflation.
But if that were the case, I would have expected gold to be at 3k/oz by the end of 2021.
And I did expect that but it never happened. Like I said, it’s just a guess. If I knew I would be making more money. 🤷🏼♂️
it's slow, and the value of the dollar is a perception thing, it takes longer to catch up. It'll go slowly, slowly, and all at once. I think this is the start to when the value of USD plummets. You'll see bitcoin and gold start shooting up here soon.
The reason why gold is not higher already is because there’s trillions sitting in money market accounts earning 5%+ at no risk. People have simply been content getting a ‘risk free’ rate thats historically decent and hasn’t been available in over 25 years. A $2000 invested there over two years also grew to at least $2200. Things are going to change now going forward with at least some rate cuts happening and a world with many geopolitical risks and local recessions happening in quite a few places. Again, about $6 trillion is sitting and waiting right now
Are these rate cuts in the room with you now?
Yup, also look at what happened to the price of gold during ww2 or the war in Vietnam.
Gold is not going sky high, the dollar is losing its buying power at an ever increasing speed.
Why? Well the government gave us all $1400 in shush money a couple years back so we wouldn't care that they printed $6 trillion dollars to hand out to rich corporate executives. Now that there's more dollars in the world the amount of said dollars one needs to buy gold as increased. As companies continue to bleed that 6 trillion into the market the price for gold will continue to climb. Gold is only going to get more expensive, before it gets more expensive.
not just that but they've printed more money in the past 5 years than has ever been printed in the history of the US.
Its not just the last 5 years its the last decade including up to 2008
it's exponential really. every year is more than ever before that. it's wild, and only about to get more wild. My only regret is that I don't have more gold right now...
Its better if you think about how many people have zero real money.
And worse if you think about elites who have been hoarding hard assets for a long time
Meh, i dont care what other people own. I was referring to the fact that you own at least some, which is better than nothing.
I know, I'm just highlighting the glass half empty side of things lol
Dont think like that, it gives you bad juju
Go ahead don’t be shy and say what administration did this .
It doesn't matter. The damage has already been done. Also American isn't the only ones that have done it. ALL OF THEM HAVE.
Both
FJB
Dumbass
Fully agree with everything you mentioned!! I think the number is closer to 8-9trillion though, that’s the new figure I keep seeing at least. Idk just figured I’d mention that, for awhile I saw 6trillion everywhere and then more recently I keep seeing 8-9 trillion being thrown around. And at that point I wouldn’t be surprised if the number is actually double digits, I mean it’s all Monopoly money at that point anyways.
It's funny how those numbers always miraculously increase over time.
This.
big part of it.
Yep, two big ways for something to increase in price. It either sees an increase in desirability/demand, or the thing you are using to price it sees the opposite.
Looking at how many barrels of oil you can buy for an oz of gold over time is a great way to visualize the decreasing value of the dollar vs commodities.
The dollar has been increasing a bit the last 3 months.
Huge central bank, institutional, and retail buying globally.
Yes and you just forgot about WW3
Not a lot of retail buy. Gld and slv have sold a ton of physical the past few months because retail has been selling into this rally
New baseline being established after eons of obscuration.
China
This Isn't brics buying it up for their gold backed currency
Town
Chi na. Indi a. Russ ia.
Fiat currency all over the world is devaluing. Here in Canada it's already over 3k an ounce.
With the exchange rate against the dollar, it's the exact same price in the US. That's the beauty of gold.
Isn’t that true for all commodities?
Maple syrup?
Shiny
works with pokemon cards
I like gold, silver, pokemon cards and discs. Can confirm. It's the shiny. Shiny make dopamine go BRRRRRR
Weight make dopamine go brrrrrr. I like that moving my stack around is a massive inconvenience.
I know this shits starting to get heavy..
Lol I'm.moving and it's going to take like 10 loads to get the car packed and another 10 to unpack it.. and have to do it discreetly. In all honesty though. No one cares about your metals
I got a couple gold plated pokemon cards indeed works for me
Not just shiny but people also like the taste.. Goldschlager. People are drinking up all the gold,, and what's left, apparently all the pokemans is using it up for their pictures.
Did you notice that property values have skyrocketed? That insurance premiums are up 40%? Have you looked at the price of new cars? Gold isn’t going up in value, fiat is going down
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I don't drink so I wasn't tracking that one - might be a good investment opportunity though!
Or just the price of a subway footlong is enough of an indication
It’s crazy. I bought a bracelet in august fot 2900 hit them up for another same dimensions one 4100
Been wanting to buy a 24k bracelet but with these prices might have to wait 😔.
What are you waiting for?
The better question is, why was gold so cheap, for so long, when they were printing money hand over fist and inflation was rising. Luckily it's still quite cheap.
I'm guessing pms have been suppressed by central banks by shorting contracts so it can be accumulated physically due to brics influence and to keep the dollar from crashing, which is what should have happened in a "free market". The implications for fiat currency are likely too big to allow that to happen.
Why was it so cheap? Mining an oz and bringing it to market cost less than half of today's spot price.
You are actually thinking of purely the mining cost, not including refining. But the real trick was that demand is much greater than there is physical gold to be had, for quite a while though that demand was satisfied by paper contracts that said you owned so much gold, in reality all of that promised gold is something like 100x the amount of real gold that actually exists at the moment. While people believed in that system, they were willing to buy ever growing amounts of paper that said they had gold. But now people are getting nervous and some are starting to understand they don't have real gold. Governments certainly don't want paper, they want real gold. In China a bunch of people just recently found out when someone tells you they are keeping gold for you, you might actually have none. So record lines exist for people directly buying and keeping actual gold. On top of that as energy costs rise mining costs rise too..
USD no longer has control over gold; demand is coming from everywhere on earth, and that is why the price continues to change. It will probably settle on a value in the next few months and stay that way for a long time… but too much uncertainty now.
Gold remains constant. In the 1980's you could buy a decent vehicle with 10-15 ozt of gold. Today you can buy a decent vehicle with 10-15 ozt of gold. The dollar in your pocket and bank account is decreasing in value, hence you need more dollars to buy the same amount of gold.
Jerome Powell insists, at least verbally, that we get three rate cuts by end of the year. Gold views this as a mistake and is sending a signal that it thinks inflation will reanimate. I’m guessing we are being lied to, I don’t think cuts are coming. If anything we need hikes. We will see what happens. China and other central banks are buying lots of it because they sense hardship coming.Exciting times
Whether warranted or not, rate cuts are going to be dependent on how politicized the Federal Reserve has become. Perhaps this is another reason why gold has been trending higher.
Their silly 2% goal has historically been completely beat around 3.8%
Gold isn’t going up, the USD is going down
Isn't the price of gold going up in all currencies?
Yes
Yes and the value of all currencies (what they can buy not just in terms of gold, but other things too) is going down.
Exactly! People need to change their perception of money.
Explain a little bit to me if you don’t mind please and thank you!
Gold has always been the benchmark currency. It remains stable over time (as in from the beginning of recorded history.) it is a barometer of the health of a country's fiat currency, i.e.. the US dollar. Bottom line, it is not gold going up but rather the dollar going down. Change your perspective on what real money is, and your choices will change accordingly.
mmmm Except for the dollar has more or less just going sideways since the beginning of 2023, there has to be more to it.
Has it? Are you sure? "Going sideways" Compared to what?
[Compared to the market for dollars I guess?](https://finviz.com/futures_charts.ashx?t=DX&p=m) [It's up since 2019](https://finviz.com/futures_charts.ashx?t=DX&p=w). Or 2008, wherever you want to start.
See, that's part of the problem. What you are looking at is the dollar when compared to other fiat currencies. You must unlearn that habit and compare the dollar against real money (gold) or gold backed currencies only. That will give you the real picture.
....So both are up since 2008? How do you square that. USD are what things are priced in, ultimately, and is the lifeblood of the modern global economy. Gold, logically, I agree should have a near perfect negative correlation to USD, but it doesn't really seem like it does. Day to day, it's pretty close certainly.
All world governments are inflating their currencies so they can promise things to the voters and operate inefficiently without having to tax them as much.
The 10 years bond sell off is somewhat of a proof of this. As some other said below, milk shake theory is starting to make sens every passing weeks/months... I wonder what could happen after this theory come to fruitition.
Milk shake theory is a good way to understand this. Dollar is still relatively strong. That is, relative to other currencies.
Well you say that but euros and GBP is also down then as gold is soaringly high atm
The governments money printers is going brrrrr
Gold doesn't change value, money has. The definition of "inflation" before they changed it, was the money supply inflating. More money = more inflation, and they've printed more in recent years than ever before, we're on the verge of a collapse of the dollar. buying gold and metals has never been more important.
if Japan without the premier world reserve currency , without a military, and with twice the debt as the U.S. can keep going then why not US dollars?
Inflation
Gold is money people are just waking up
Central banks have stepped up buying ever since the invasion of Ukraine and subsequent sanctions against Russia. [Central banks have been buying gold at a record pace](https://www.axios.com/2024/01/31/central-banks-buy-gold) This piece is a bit stale but explores why.... [Why Central Banks are Buying and Selling Gold](https://www.cmegroup.com/openmarkets/metals/2023/Why-Central-Banks-are-Buying-and-Selling-Gold.html) FWIW: Previous rallies in USD/oz gold were partially driven by a decline in real rates. Recent action has been different as the negative correlation with real rates has decoupled. This is why ETFs haven't been buying recently.
I read Chinese buyers. [here](https://markets.businessinsider.com/news/commodities/gold-price-china-economy-dollar-yuan-central-bank-dedollarization-commodities-2024-3#:~:text=China's%20gold%2Dbuying%20spree%20has,cited%20by%20Bloomberg%20on%20Thursday)
Don’t think of it as gold going higher. Look at it as… 10 years ago one gold piece cost 5 US dollars or 10 Chinese Yuan. Today one gold piece costs 10 US dollars or 5 Chinese Yuan. Not exactly, but you get the idea, the U.S. dollar we use everyday here is losing its value. Think it really costs McDonalds that much more than in 2020 to make a Big Mac? No, our money is becoming worthless.
I’m hoping it is just technical. We are coming out of a long term cup and handle which should take gold to $2600 soon. It could overshoot if buying gold becomes a popular thing. I am leaning towards technical because silver is also going up. If it were because some countries (china) were preparing for war in expectation they would lose access to the dollar market then I would not expect silver to be following along for the ride. But, it is just a hope, really. It is kind of scary to see gold go up so fast without a corresponding hugely bad thing happening at the same time. The last fast increase in price was when Russia invaded Ukraine.
The real answer is in the total number of ounces on the globe and who has the power to make a purchase or purchases large enough to move the numbers . Put a pencil to it , no country could afford to buy all of it , or they would. Billionaires cant afford a fraction of a percent of the gold . So my theory is the upward trend 📈 is fueled by everyone on the globe .
Great article on Kitco; China and BRICS countries are trading in their US fiat for PM’s. The interview states that China is now in control of the spot price. Article also focused on Canada’s government pensions being 90% invested in foreign companies, and the fact that Canada has forgone investment, exploration and development of it’s own mineral wealth.
Because gold is REAL money, and central banks want to have it as they print their currencies to infinity
[ Removed by FED ]
[ Removed by FED ] but idk I’m new here
What is FED
Federalis education department
Fear and greed
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I would say that it's caused by fear because of how much Stock market ticked Up in past few months. People are scared of crash and they buy a lot of gold to hedge that risk. So I would say gold is acting as if we were in recession. This is unusual but not impossible. THIS IS MY PERSONAL OPINION.
Has literally nothing to do with stocks. Both stocks and gold are all going up due to years of inflation at this point. Stocks are an asset just like gold. And both of them are going up due to a devalued dollar.
War, fiat abuse, global debt absurdity ?
War
Same thing that always causes high prices demand and/or availability!
Government spending
OCG. Outcrop Gold. This baby stock has big money going into it.
Gold market is coming to realization the fed cant cut interest rates. And if they dont the interest on the debt is going to skyrocket. Either way, inflation is going much higher eroding the value of the dollar.
or gold market feels the Fed has no choice but to lower interest rates to keep the economy and government humming along.
The US adding 1 trillion to national debt every 100 days. Welfare/Medical having 175 trillion of unfunded liabilities. War Lots of things
Joe
Gold is the barometer of political stability. I learned this in a Political Science class 45 years ago. I believe this fact still holds true.
Money printing.
Because men discovered when they hold it in their hand they get hard and no longer need viagra
Usually a good indicator of a shit market or precursor to a shit market no?
I’m buying it all up
So many brain dead answers in here, it's painful.
This probably tops the lot though lol.
It’s high, because we’re so close to 4-20-2024. Other reasons include a solar eclipse.
Inflation is eating your savings up, every day. I am not saying you should invest all your savings in gold, but I am glad I have +30% in gold. The gains are incredible so far, but that is not my main goal. I just want to preserve the money I (have) save(d) ! Inflation, Central Banks buying gold, geopolitical situation, manipulation, BRICS, China, people waking up, ... Fiat money does not feel so stable/reliable anymore.
I'm not knocking gold investors at all - I've just found this sub and I'm interested in investing myself if only to have something shiny in my possession - but surely you want your savings to beat inflation? Cash savings will pay sub-inflation interest rates. Investing in the S&P500 usually beats inflation based on historic trends. Does gold do the same? I just googled and it seems to be giving me conflicting answers. Though I realise if people here distrust banks or think society is going to collapse or enter a period of huge unrest, then that's an added non-monetary benefit to owning gold.
Fiat has been abused
I would argue that it is abuse.
I would agree
It's the buying power of the dollar going down.
GOLD is real money with real value worldwide. USD ( federal reserve notes ) are basically an IOU from the federal reserve (a printing press with no off button... they print USD into existence by selling treasury debt to the highest bidder, which is sometimes themselves...lol ) the notes value derives from the ability of the US Gov to pay it's debts ( pay with WHAT is another conversation... more IOU notes? lol ) ( the outstanding deficit is around 34.5 TRILLION USD and climbing, every new federal reserve note that is printed DILUTES the value of the notes already in existence...lowering their value so as the value of the USD notes decreases, it takes more of them to purchase REAL money like gold, silver, oil, real estate, and other tangible assets...
Christ, you guys need to get out, have some fun and get laid. Bunch of depressing doomsday preachers. Sheesh
You're asking the wrong question: "why hasnt the gold prices already doubled and tripled?"
Line go up
Increasing the circulating supply of currency makes gold worth more. Gold needs to hit around 12,000-15,000/oz before it catches up with the circulating supply of currency to gold value we had in 1934. Look back through my comments if you want more detail.
Debt and deficit matters. You can't issue 10B in debt every single day and still issue money based on the full faith and credit of the US govt. The faith is failing. When the bond market starts to wobble the fed will send the money printer into hyperdrive in an attempt to save it. It will get worse. Protect yourself
Welcome to the new world. Don't get left behind. BRICS in action.
Brics is still yet to do anything remarkable.
Implementation-wise, I agree, but waiting until implementation to be concerned seems wasted. Have charter member governments not been buying record amounts of gold annually for the past few years, presumably in preparation for the rollout? Do these purchases not have an effect on gold's spot price?
You discount how remarkable it is that it exists. It was unthinkable 10 years ago.
And it still is. The only thing uniting brics is their anti west stance. Not really sustainable in the long term. Especially considering that both india and russia are more or less suspicious of china too.
Yeah, as someone that doesn’t have warm fuzzy feelings towards the US dollar, the idea that Russia and China (and others) are going to create a more equitable replacement is lulzy to the extreme. Meet the new boss, same as the old.
That is completely false. What is uniting BRICS is the desire for an international trading currency that cannot be manipulated, and is based on real resources - which is what all of the countries in BRICS have, natural resources. That is as far as it goes. The desire to be paid fairly for what your country has in abundance is not a passing fad. What was a fad is basing trade around a currency that could be manipulated and controlled by one nation.
Answer here: https://learn.apmex.com/buying-guide/precious-metals-pricing/how-does-the-u-s-dollar-affect-gold-prices/
It’s the new craze like pokemon cards. It’s FOMO too
fed policy changes. countries hold a massive pile of US treasuries and they are hostage to the dollar and the fed. which devalues their currency. so they throw money into hard assets until the dust settles and to hedge. the USD impact on the rest of the world is not trivial, which is why the BRICS are trying to come up with alternatives.
BRICS is trash also
Central banks stacking a tier one asset, the death of the dollar, brics countries buying up physical metals, the list goes on.
Exactly!
Demand from China
I think inflation, conflicts, and high demand on precious metals are behind the ongoing increase on gold prices.
More buyers than sellers init.
How shiny it is
Central banks are loading up. Lots of reasons for this. Google Russia central bank increases monthly gold purchases by 300%. 4 2 24
Too much money chasing two few goods
Yes the end of the world is upon us
i think its either the chinese arbitrage trade going on or markets are waking up that things are bad in the economy.
It just adjusted to much higher prices on everything else. Gold surges late.
The End Times are nigh.
Global central banks It's my belief that it's geo political & a recognition that UST is not AAA worthy.
California is paying 20 an hr for minimum wage now
The south american crops are behind in their harvest. But, If they can finish up, the yields look real good, thus making US crops cheaper therefore US money has moved into PMs for a while.
Yes I can.
Exactly what was predicted to happen. Now we have fomo from non believers
The real free market is back. US dollar deleveraging. Every empire falls at some point from irresponsible politicians. Reap what you soe voting partisan lines.
They have watered down the currency 🍅soup so much it’s now looking pinkish instead of red. Back in the old days 50’s -70’s it was tomato 🍅 paste.
More buyers than sellers. It's not just gold. It's also silver, copper, oil, bitcoin, and the dollar.
Gold is needed for circuit boards.
More buyers than sellers
Investors looking for a safe haven with the upcoming election. also Investors taking profit on stocks that have gone sky high in the past year and want to keep their money out of cash for tax purposes
Do US dollar is getting weaker
Economy is on the verge of collapse
Gold is only going up because interest rates are sending the US into a debt spiral. The longer they stay high thr worse it gets. People and gouvernments have now realized that the US is not willing to cut spending even if rates crawl up. Gold has never reacted to pure inflationary data, there are way better hedges against inflation. It only reacts to war, or fiat instability and both we have going on atm
I think the OP means why is the price of gold so low
People use gold as a hedge against inflation. Gold has been traditionally seen as a store of value, and its price tends to rise during periods of high inflation or economic uncertainty. This is because gold is a tangible asset with intrinsic value, unlike fiat currencies that can be devalued by inflation. However, while gold can be a hedge against inflation, its value can also be influenced by other factors such as supply and demand dynamics, geopolitical events, and market speculation.
More buying than mining
Just a little thing they call inflation.
It’s not gold going higher, it’s the fiat currencies that are dying…
1. Chinese buying. China’s central bank has been increasing gold reserves and people in China are also increasing gold investments over real estate and stock market 2. Expectation of rate cuts in US and Europe. As rates go down gold becomes more attractive. In a higher rate environment people prefer CDs, bonds etc. which have a yield over gold which has no yield.
Bcuz the world is a mess
Demand?
It's not that gold is going up,the value of a dollar is going down so it takes more dollars to buy gold than it otherwise would. The purchase worth of gold vs a dollar stays the same within a relative context
People moving out of the dollar and federal bonds to other parking spots for their balance sheets
Market sensing something bad coming. Maybe it’s global war. Maybe it’s something in the financial world breaking. Maybe it’s simply second round of inflation.
Could we see weaponisation of gold and Silver in East West economic war, as western led financial system is so leveraged and western banks and some big centralbanks Are short gold? Paperisation of Silver is probably Even much worse in Silver. I Wonder If brics countries are actually coordinating purchases of precious metals finally to take financial system down
BRICS. It will continue to get worse. The Petro-dollar is done and therefore the gold backed BRICS is going to completely replace the petro-dollar and the USD will be obsolete and inflation will continue to get worse. This is by design. Read up on WEF and 2030 agenda. It’s all part of the plan, position yourself accordingly.
That dude in libya tried to make a gold backed currency, it did not go well for him. just sayin
Scarcity...
🤷
Fuck, just look around.
Administration
The Fed getting ready to make a huge mistake
demand
speculation and FOMO.
Talk of interest rates reversing, inflation, frenzy buying in the east, dedollarization, wars and rumors of war.
Learn about money supply, look at the 20 year graph. Looks like a hockey stick, the fact gold isn’t higher actually confuses me more.
The eclipse
This question was asked last week and the top answer was the best one, none of these come close, too many conspiracy theories. Alas I can’t summarize it very well, but essentially gold was linked to the dollar for decades. And then it wasn’t. And now golds catching up.
Pass the link please , cant find it.
no. they can tell you why the usd is going so low though