{"id":68220,"date":"2024-05-19T14:49:25","date_gmt":"2024-05-19T19:49:25","guid":{"rendered":"https:\/\/olduvai.ca\/?p=68220"},"modified":"2024-05-19T14:49:25","modified_gmt":"2024-05-19T19:49:25","slug":"dear-jerome-powell-is-everything-under-control-spotlight-gold-and-silver","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=68220","title":{"rendered":"Dear Jerome Powell, Is Everything Under Control? Spotlight Gold and Silver"},"content":{"rendered":"<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"alignwide wp-block-post-title has-gigantic-font-size\"><a href=\"https:\/\/mishtalk.com\/economics\/dear-jerome-powell-is-everything-under-control-spotlight-gold-and-silver\/\">Dear Jerome Powell, Is Everything Under Control? Spotlight Gold and Silver<\/a><\/h3>\n<\/div>\n<\/div>\n<div class=\"wp-block-columns alignwide are-vertically-aligned-top is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-top is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"entry-content wp-block-post-content is-layout-flow wp-block-post-content-is-layout-flow\">\n<p>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.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-66209\" src=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Silver-in-US-Dollar-BullionStar-2024-05-17.png?resize=1024%2C662&amp;quality=80&amp;ssl=1\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" srcset=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Silver-in-US-Dollar-BullionStar-2024-05-17.png?resize=1024%2C662&amp;quality=80&amp;ssl=1 1024w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Silver-in-US-Dollar-BullionStar-2024-05-17.png?resize=300%2C194&amp;quality=80&amp;ssl=1 300w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Silver-in-US-Dollar-BullionStar-2024-05-17.png?resize=768%2C497&amp;quality=80&amp;ssl=1 768w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Silver-in-US-Dollar-BullionStar-2024-05-17.png?w=1291&amp;quality=80&amp;ssl=1 1291w\" alt=\"\" width=\"1024\" height=\"662\" data-recalc-dims=\"1\" \/><figcaption class=\"wp-element-caption\">Chart courtesy of BullionStar<\/figcaption><\/figure>\n<p>Congratulations to silver bulls, copper bulls, gold bulls, S&amp;P 500 bulls, Nasdaq bulls, Dow bulls, and US housing bulls?<\/p>\n<p>Did I leave anything out?<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"twitter-tweet twitter-tweet-rendered\"><iframe id=\"twitter-widget-0\" class=\"\" title=\"X Post\" 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frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\" data-tweet-id=\"1791454199777026118\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<\/figure>\n<div id=\"ic_d_3x7_1\"><\/div>\n<p><strong>Record High on Gold<\/strong><\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-66208\" src=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Gold-in-US-Dollar-BullionStar-2024-05-17.png?resize=1024%2C645&amp;quality=80&amp;ssl=1\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" srcset=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Gold-in-US-Dollar-BullionStar-2024-05-17.png?resize=1024%2C645&amp;quality=80&amp;ssl=1 1024w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Gold-in-US-Dollar-BullionStar-2024-05-17.png?resize=300%2C189&amp;quality=80&amp;ssl=1 300w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Gold-in-US-Dollar-BullionStar-2024-05-17.png?resize=768%2C484&amp;quality=80&amp;ssl=1 768w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/05\/Gold-in-US-Dollar-BullionStar-2024-05-17.png?w=1286&amp;quality=80&amp;ssl=1 1286w\" alt=\"\" width=\"1024\" height=\"645\" data-recalc-dims=\"1\" \/><figcaption class=\"wp-element-caption\">Chart courtesy of BullionStar<\/figcaption><\/figure>\n<p><strong>Gold\u2019s Strongest Move In a Year Was When the Dollar Was Rising<\/strong><\/p>\n<p>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\u2019s discuss why.<\/p>\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-65596\" src=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/04\/Gold-vs-the-US-Dollar-2024-04-11-1.png?resize=976%2C1024&amp;quality=80&amp;ssl=1\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" srcset=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/04\/Gold-vs-the-US-Dollar-2024-04-11-1.png?w=1309&amp;quality=80&amp;ssl=1 1309w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/04\/Gold-vs-the-US-Dollar-2024-04-11-1.png?resize=286%2C300&amp;quality=80&amp;ssl=1 286w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/04\/Gold-vs-the-US-Dollar-2024-04-11-1.png?resize=976%2C1024&amp;quality=80&amp;ssl=1 976w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/04\/Gold-vs-the-US-Dollar-2024-04-11-1.png?resize=768%2C806&amp;quality=80&amp;ssl=1 768w\" alt=\"\" width=\"1309\" height=\"1374\" \/><figcaption class=\"wp-element-caption\">Gold and US Dollar charts courtesy of StockCharts.Com, annotations by Mish.<\/figcaption><\/figure>\n<p>On April 11, 2024, I noted\u00a0<strong><a href=\"https:\/\/mishtalk.com\/economics\/golds-strongest-move-in-a-year-was-when-the-dollar-was-rising\/\" target=\"_blank\" rel=\"noopener\">Gold\u2019s Strongest Move In a Year Was When the Dollar Was Rising<\/a><\/strong><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Gold\u2019s strongest move in over a year started in March with the US dollar index generally moving higher.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<div id=\"ic_d_3x8_1\"><\/div>\n<p><strong>Gold vs the US Dollar<\/strong><\/p>\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-65045\" src=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/03\/Gold-vs-the-US-Dollar-2024-03-07-1.png?resize=875%2C1024&amp;quality=80&amp;ssl=1\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" srcset=\"https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/03\/Gold-vs-the-US-Dollar-2024-03-07-1.png?w=1274&amp;quality=80&amp;ssl=1 1274w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/03\/Gold-vs-the-US-Dollar-2024-03-07-1.png?resize=256%2C300&amp;quality=80&amp;ssl=1 256w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/03\/Gold-vs-the-US-Dollar-2024-03-07-1.png?resize=875%2C1024&amp;quality=80&amp;ssl=1 875w, https:\/\/i0.wp.com\/mishtalk.com\/wp-content\/uploads\/2024\/03\/Gold-vs-the-US-Dollar-2024-03-07-1.png?resize=768%2C899&amp;quality=80&amp;ssl=1 768w\" alt=\"\" width=\"1274\" height=\"1491\" \/><figcaption class=\"wp-element-caption\">Charts courtesy of Stockcharts.Com, annotations by Mish<\/figcaption><\/figure>\n<p><strong>Gold vs the US Dollar Synopsis<\/strong><\/p>\n<p>Contrary to widespread myth, gold is not a good US dollar hedge.<\/p>\n<p>With the US dollar Index at 90, gold has been at $380, $1000, $1130, and $1900.<\/p>\n<p>And there are times when gold and the dollar rise together.<\/p>\n<p><strong>When Does Gold Do Best?<\/strong><\/p>\n<p>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.<\/p>\n<p>In the mid-to-late 1990s, everyone thought \u201cThe Maestro\u201d, Alan Greenspan, had everything under control. In such periods, gold is among the worst assets to hold.<\/p>\n<p><em>Gold is best viewed not as a hedge against inflation but a hedge against credit stress, stagflation, and faith in central banks<\/em>.<\/p>\n<p><strong>Is Everything Under Control?<\/strong><\/p>\n<p><em>Hello Jerome Powell. Sorry for asking, but we need to know: Is everything under control?<\/em><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dear Jerome Powell, Is Everything Under Control? Spotlight Gold and Silver 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. Chart courtesy of BullionStar Congratulations to silver bulls, copper bulls, gold [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,374,1583,16888,647,730,839,3650],"class_list":["post-68220","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-gold","tag-housing","tag-jerome-powell","tag-precious-metals","tag-silver","tag-us-dollar","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=68220"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68220\/revisions"}],"predecessor-version":[{"id":68221,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/68220\/revisions\/68221"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=68220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=68220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=68220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}