Hello friends. It's no shock that over the past 10 years, we have seen gold dramatically outperform commodity markets. However, recent developments have put a wrench into this gravy train, as gold fell nearly 60% when measured against it's commodity counterparts.
We think that gold could be primed to outperform commodities through the rest of 2022 and most of 2023, but after this we are expecting that it will dramatically underperform the general commodity market once again, in yet another relentless bear market.
The entire concept of gold as a """HedGe aGainSt InFlaTioN" is utterly ripped to shreds by this chart. No hedge against inflation would be expected to appreciate by 850% against the literal inflation benchmark which is commodities. On top of that, no inflation hedge would be expected to lose more than HALF it's entire value. Like if you had enough gold to buy 100 potatoes, now you only have enough gold to buy around 40 potatoes. Maybe if you wanted to preserve your capital against inflation, you should have cut out the middleman risk and just went long commodity ETFs. Too late for that now. Too bad for you top buyers. To be fair top buyers in all markets always lose, but in the case of gold it's touted as such a store of value that somehow buying high should be "praised" when really it is just a show of ignorance.
Thanks for playing.
We think that gold could be primed to outperform commodities through the rest of 2022 and most of 2023, but after this we are expecting that it will dramatically underperform the general commodity market once again, in yet another relentless bear market.
The entire concept of gold as a """HedGe aGainSt InFlaTioN" is utterly ripped to shreds by this chart. No hedge against inflation would be expected to appreciate by 850% against the literal inflation benchmark which is commodities. On top of that, no inflation hedge would be expected to lose more than HALF it's entire value. Like if you had enough gold to buy 100 potatoes, now you only have enough gold to buy around 40 potatoes. Maybe if you wanted to preserve your capital against inflation, you should have cut out the middleman risk and just went long commodity ETFs. Too late for that now. Too bad for you top buyers. To be fair top buyers in all markets always lose, but in the case of gold it's touted as such a store of value that somehow buying high should be "praised" when really it is just a show of ignorance.
Thanks for playing.