You need a PLUS account to view this content. Try one month of PLUS for FREE.
Already have an account? log in
Gold: Overvalued And Overbought?
Gold. Every time I mention it, somebody gets pissed at me.
With the possible exception of calling D
The fact that gold is so obviously and significantly overbought is a consequence of the fact that many believe that Donald Trump is likely to wreak havoc on the world at a scale that makes the Great Financial Crisis seem like a tempest in a teapot. It’s as simple as that.
“Some people” in foreign nations noticed how gold has helped Russia survive western sanctions. No access to the USD financial system necessary if you need to raise cash of some sort to pay for imports. Or receive payment for your oil etc. Just move the title to some bars or ship the bullion. Foreign buying helps explain the persistent bid below the market, even when the USD shows some life.
Crypto was supposed to fill that role as well, but it has become increasingly clear that your transactions are not as opaque as it was once hoped. Especially in large quantities.
I will be considered loopy for this one, but gold has not returned anything to anyone unless they owned and sold it for a realized gain. I didn’t sell mine, all bought a few years ago at $1250 or less. I have received no return because I haven’t sold it yet. Neither has anyone else who still owns theirs. No one gets a return on art, land, gold, or any other asset that returns no cash while allowing its owner to retain their ownership. Such assets that produce only unrealized paper gains have no intrinsic value. Period. I’ve testified under oath about this. Scary stuff, testifying under oath, at least to me.