Looking at some of the historic phases we were in (Dot.com Bubble, Real-Estate Bubble) and the current Zero-Interest Bubble, the M1 money stock and the development of the S&P500 the question arises if gold is losing it's relevance as safe haven. Given the explosion of central bank money and the clear trend to govern by central bank monetary policy one would expect gold should already show clear signs of strength and grow in value.
After the Dot.com bubble burst gold was in demand. After the real estate bubble burst gold was in demand. Then something happened. 9/11 and the "War on Terror" and continued M1 money stock or cheap central bank money flooding. Gold lost value continuously. Up until SARS-CoV2 and the Great Reset strategies being executed. With the sudden drop in oil prices in Feb. 2020 and Covid-19 being used to create quite a fear monster gold was in high demand.
But gold was put in check (for now) again by the central banks. This time with crazy rocket parabolic money supply explosion.
Now the question will be will central banks be able to contain the monsters they summoned by their strategies and keep the world economy afloat even when in the next couple of month the economic bad news will become visible and will have to be managed? Will the shy money seek yet another time gold as a safe haven?
Any of the yellow continuation arrow trends for gold seem possible. Note it does appear historically more likely that gold will rise to new heights.
Gold remains a valid portion of any portfolio. At what percentage and what shape (physical or digital ) is up to each of us to decide for ourselves.
After the Dot.com bubble burst gold was in demand. After the real estate bubble burst gold was in demand. Then something happened. 9/11 and the "War on Terror" and continued M1 money stock or cheap central bank money flooding. Gold lost value continuously. Up until SARS-CoV2 and the Great Reset strategies being executed. With the sudden drop in oil prices in Feb. 2020 and Covid-19 being used to create quite a fear monster gold was in high demand.
But gold was put in check (for now) again by the central banks. This time with crazy rocket parabolic money supply explosion.
Now the question will be will central banks be able to contain the monsters they summoned by their strategies and keep the world economy afloat even when in the next couple of month the economic bad news will become visible and will have to be managed? Will the shy money seek yet another time gold as a safe haven?
Any of the yellow continuation arrow trends for gold seem possible. Note it does appear historically more likely that gold will rise to new heights.
Gold remains a valid portion of any portfolio. At what percentage and what shape (physical or digital ) is up to each of us to decide for ourselves.
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