Skip to main content

The Future of Gold

For centuries, gold has remained a store of value as fiat currencies have and, if history and modern trends are any revelation, always will fall to asymptotal zero at the hands of the monetary manipulators. The global marketplace is today at the mercy of a currency war which risks savings and the middle class to encourage hasty consumption, speculation, and malinvestment to prop up asset classes and generate the wealth effect in an environment saturated with exorbitant paper gains cloaking real and eventual losses, not to mention the unseen and myriad gross externalities veiled by unsubstantiated optimism. 
As the Federal Reserve has continued to expand its balance sheet, one can observe a strong positive correlation between the dollar price of gold and the extent of the Fed's dollar assets. Of course, the dollar price of gold, in keeping with any other asset, is susceptible to market corrections and speculative buying and selling, as well as geopolitical trends, financial crises, and competing assets or substitutes. Silver is one of these potential substitutes whose properties are both aesthetically appealing and industrially useful. 
Across the globe, central banks, including the People's Bank of China, have begun to hoard undisclosed supplies of gold to conceivably protect their balance sheets from the depreciation of their USD reserves and to potentially compete with the USD for market purchasing power and status as the world's reserve currency. The PBC has probably protected this information to allow for further transactions for gold at the lowest possible prices. Once this information becomes public, the gold price will likely skyrocket in response to an evidenced reduction of supply on the market. 
If the Federal Reserve introduces another dose of quantitative easing, and if interest rates continue to remain low, both of which are highly probable courses for the United States, the dollar price of gold is sure to eventually climb. The timetable for this eventuality is based upon the willingness of the banks of global manufactures, namely China, to vendor finance the insolvent United States. If recent trends are any indication, they will not long endure this process, and China may not even be able to afford this option. Akin to America's Great Depression, the United States is poised to relate to China in the fashion in which Great Britain struggled during the 1930s. Finally, it seems, China may allow its yuan to appreciate to allow its laborers the fruits of their labor instead of propping up the United States markets. With this impending decoupling and the end of exported goods for imported inflation, the dollar price of gold is sure to take flight.

Comments

Post a Comment

Popular posts from this blog

Trump Victorious in 2024 Presidential Election

As of this hour, former President and now President-elect Donald Trump has secured his second term as the forty-seventh President of the United States. Trump’s victory comes after winning key battleground states Wisconsin, Michigan, Nevada, Arizona, Pennsylvania, and Georgia.  As for the popular vote, Trump was victorious there as well, winning by a one-and-a-half-percent margin. Despite these results, it’s evident that there remains a significant social and political problem in the United States, where politically-motivated violence, social unrest, crime and general instability have become rampant over the years since the death of George Floyd.  However, I’d say the fact that it was even this close is ominous for the years ahead. This was as clear as it gets for an election, that the incumbents (both Biden and Harris) are wholly unfit for any office, that they present a real and present danger where they’re allowed within twelve thousand miles of a school zone, let alone any...
Post a Comment
Read more

From BC to AD to AI

Artificial intelligence is bound not only to render the ordinary human being boring by comparison, and in many cases practically unnecessary, but to dispose human beings to hostility toward each other where any dares pose a question or raise a concern instead of taking it up with a chatbot (or AI interface); such a course of action eventually assuming such a regular place in human affairs as to stand in entirely for human discourse and daily interaction.  This is not only a very real possibility when considering the future course of human ‘civilization’; it is more than likely imminent or already upon us.  It is left to be seen just what this will look like, just how this will play out, just what tolerance the species (and even beyond) has for such extremes which this technology is to bring about. Likewise, it remains to be seen whether a heavily-indebted society facing never-ending and unavoidable taxes (i.e. taxes on property) can even be expected to retrain and retool for t...
Post a Comment
Read more

It’s Time to Make Things Right

Some people are late to the conversation. Some think that there’s still room and time for dialogue, that those who don’t get it are still within reach, that they can still be ‘saved’; that, if we are clever and cautious enough, if we just assemble a tighter and more comprehensive argument and package it nicely enough, reason will finally prevail, and that the uninitiated will surely accept the truth when it is finally perfectly and plainly laid before them in the clearest of resolution. This is not just a pipe dream but a complete misreading of the room, a special kind of ignorance to the “godless ideology,” as Virginia Delegate Nick Freitas has described it, “that kills babies in the womb, sterilizes confused children, turns our cities into cesspools of degeneracy and lawlessness… and [led to the assassination of] Charlie Kirk.” Remember this: less than a year ago, half of the country was wholeheartedly prepared to vote for a senile dementia patient, Joe Biden, for the simple reason t...
Post a Comment
Read more