The US stock markets are all at record highs, gold is at a record high, and silver is at the highest price since 2013. Welcome to the everyone wins market, no craps allowed.
Congratulations to silver bulls, copper bulls, gold bulls, S&P 500 bulls, Nasdaq bulls, Dow bulls, and US housing bulls?
Did I leave anything out?
Record High on Gold
Gold’s Strongest Move In a Year Was When the Dollar Was Rising
Gold and the US dollar are not as inversely correlated as widely believed. Sometimes gold and the dollar move strongly in the same direction. Let’s discuss why.
On April 11, 2024, I noted Gold’s Strongest Move In a Year Was When the Dollar Was Rising
Gold’s strongest move in over a year started in March with the US dollar index generally moving higher.
Gold vs the US Dollar
Gold vs the US Dollar Synopsis
Contrary to widespread myth, gold is not a good US dollar hedge.
With the US dollar Index at 90, gold has been at $380, $1000, $1130, and $1900.
And there are times when gold and the dollar rise together.
When Does Gold Do Best?
In general, gold is a poor inflation hedge. The best example is gold fell from$850 to $250 per ounce with inflation every step of the way.
In the mid-to-late 1990s, everyone thought “The Maestro”, Alan Greenspan, had everything under control. In such periods, gold is among the worst assets to hold.
Gold is best viewed not as a hedge against inflation but a hedge against credit stress, stagflation, and faith in central banks.
Is Everything Under Control?
Hello Jerome Powell. Sorry for asking, but we need to know: Is everything under control?
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