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McElligott Has Unified Theory For Bitcoin, SaaS Plunge, Gold Rally
If you're searching for a unified, Occam's razor-friendly theory to explain gold's meteoric rise ove
Barbaric relic in the House!!
The IGV touched the 200 week moving average today, similar destruction as the crypto sphere. Is software really facing an imminent extinction event? It trades that way but I doubt it will die this year or next, even if it does eventually, I’ll hold my nose and bid software names here.
“The accompanying rally was a magnet which eventually pulled in anyone and everyone as the allure of meme stock-like returns on a safe haven was simply too much to resist — and as precious metals’ momentum demanded the attention of trend-following models. Throw in an incremental bid tied to Trump’s theatrics and you have the largest multi-year gold rally on record.”
That. I guess the question now is, where is the dividing line between gold’s (new) real value, and its temporary “meme-stock” price.
There was a commentary on Marketwatch today about how dold was finding a bit of a bid while silver was not.
Gold has underlying support from central banks which silver lacks.
What really will unterest me is is whether than gold-backed Tether stable coin will see outflows. Their managers have been HUGE buyers of gold bullion over the last three months.
I’m not for one moment suggesting that we’re moving back to gold as a reserve ‘currency’. And I don’t know what’s going to replace the dollar.
But, as with all reserve currencies, from the Lydian Lion to the Pound, it’s trust that goes first and only THEN, an alternative surfaces.
And it doesn’t happen overnight.
Whether it be the money changers at the Temple in Jerusalem or today’s gnomes in Zurich and mandarins in China, the move starts imperceptibly, piecemeal, slowly revealing itself.
But the one thing connecting a pension fund manager in København and the central bank in Peking (yes, I’m that old) is trust in the dollar.
I see Trump suddenly developed a trust in the Christian god last night. He should have kept his attention on the world’s belief in the dollar Mammon.
I’m with Mac.