There are still very few people commenting on the significance of Gold breaking the $2000 barrier mainly because they don’t understand it. The reason we are seeing the value of Gold increase is because the Dollar is in trouble, it’s on fire and this fire will spread into the financial markets, stock markets, property markets and the entire economy.
This is why I’m not taking a victory lap on my call with Gold, although rewarding financially - it really portends the hardship and problems on the horizon. The vast majority of people will be facing economic hardship and Gold is basically letting us know that it is on its way. It’s a sad and sobering situation and things will continue to get worse as the price of Gold continues to get higher.
The FED are committing to low/negative interest rates which is a direct threat to the American economy. They are basically saying that they are going to wipe out the value of people’s savings through inflation while still increasing the standard of living. We already have a lower supply due to Covid-19 with people not working, this is an insult to injury by devaluing the currency. There will be a lot of broke millionaires when their money is worth nothing.
Gold going up is a measure of how much value the Dollar is losing. When people realise the Dollar is going to fall off a cliff, it will drop like a stone and Gold will take off in its rocket ship.
Until we see the mainstream media and some spectacular gains in Gold, it’s as steady as she goes and enjoy the ride. And if you’re not already on the Gold train then get on it! Currently gold is trading above $2040, up more than 4% for the week and it’s only Wednesday. I believe the next $1000 milestones are going to start dropping like dominoes.