Doug Casey, founder of "The International Man" discusses with David Lin, anchor for Kitco News, why the dollar is on a long-term secular decline and will eventually be displaced as the global reserve currency.
The macro landscape has shifted tremendously in Gold’s favor over the past few months. The yield curve will invert soon, signaling a recession in the next 6 to 18 months (average of 12).
Meanwhile, the Russian invasion into Ukraine is going to disrupt global energy and food markets, leading to persistent and likely higher inflation this year.
A historical parallel could be the 1973 to 1975 period which included a bear market and stagflationary recession. The Gold surged and peaked near the end of the bear market and recession while Silver and general commodity prices peaked well before Gold.
Gold is on the cusp of making one of its most significant breakouts. It has upside targets of $3,000 and $4,000 which could be hit in 2024. Silver will likely break $50 but it is less certain if it can hit $100 in this scenario.
With digital gold acting more like digital lead in recent weeks, as bitcoin and the broader crypto sector trade as high-beta tech stocks perhaps helping tech funds satisfy margin calls, the real gold has no such qualms and after flatlining for much of the past 18 months, has broken out solidly to the upside, and just today spike more than 3%, rising to session high of $2,063.53
Why $2,063.53? Because $2,063.54 was the closing high on August 6, 2020 when gold hit an all time high in the aftermath of the Fed's money debasement frenzy when the Fed's balance sheet exploded by hundreds of billions weekly.
But while technical selling may have emerged at this key resistance level, we expect it to be taken out shortly, with even Goldman raising its gold forecast overnight, writing that in light of the Russia-Ukraine war, the bank is raising its gold price target over different time horizons. Targets raised for:
3-month horizon to USD2,300 vs. $1950 previous. 6-month horizon to USD2,500, from $2050 previous. 12-month horizon to USD2,500 vs. $2150 previous.”
Why? Because "An increase in demand from consumers, investors, central banks due to the rising geopolitical uncertainty."
Gareth Soloway says China is going to try to dethrone the U.S. dollar as world reserve currency with their new digital Yuan. Gold is rallying to an eight-month high as inflation rises and geopolitical concerns heighten.
This week we explore the price movements of gold, silver, US dollar, equities, and more amid the rumors of a potential interest rate rise? Have the markets already priced in an anticipated interest rate rise?
John Williams, founder of ShadowStats, calculates inflation using the same methodology that the government used to have for calculating the consumer price index (CPI).
Williams told David Lin, anchor for Kitco News, that the true headline CPI number is loser to 15%, not 7%, as reported by the Bureau of Labor Statistics.
Here's why the government has a political incentive to "suppress" the reported inflation number.
JP Cortez of the Sound Money Defense League discusses with David Lin, anchor for Kitco News the importance of eliminating sales taxes on physical gold and silver, which he considers "sound money".