Is gold expensive right now considering how much aditional fiat has been pumped into the system through QE.
Stocks are artifically inflated, property artificially inflated through stupid low interest rates.
Huge amount of global uncertainty in Turkey, Venezuela, France, Italy. Trade wars underway, global debt at an all time high, the US in over $21 trillion debt (interest payments alone will reach $1 trillion)
Gold thrives on fear and there are a lot of things that go tits up at any time.
Why hasn't gold's price gone up? QE should be inflating everything, no? More money in the system + low interest rates should have people buying record amounts of gold, right? Why isn't that happening?
I agree about the stock market. I don't know when this bull market is going to end, but it'll at least be interesting to see what happens to the precious metals market once interest rates start rising.
The QE money has not been used as intended, it has not circulated in the economy. Banks have horded it and used it to pump the stock market, companies are buying back their own stock using cheap money artificially inflating the price.
Regarding gold price - monkey hamered at critical moments using fake paper contracts and a strong dollar is holding it back.
It will all go tits up sooner rather than later and gold price will go substantially higher but no one has a crystal ball to call when that will happen.
I stand by what I said. The goldbugs will NEVER tell you it's time to sell gold. Ever.
How many
BTC bugs tell people to dump. HODL and accumulate no matter what is the normal response.
The average person does not need gold as an investment or as a hedge against inflation. How well has gold hedged against inflation since 2011? Can the average middle-class person afford to lock up a lot of money in an asset that provides no income; might cost money to keep secure; might get stolen; and might decrease significantly in value? I don't think so.
The same can be said for bitcoin although it poses significantly more volatility and risk over gold. How many middle class people could tolerate a $19k to $6k dump on their savings? It does not provide income, far more lose bitcoin to hacking, scams and lost private keys over physical metals theft (check the scam accusation thread on this forum and find me an equivalent on any precious metals forum). Physical metals open you up to local thieves, bitcoin opens you up to a whole world of hackers.
If gold is a useless old relic then why are so many countries fighting to repatriate their gold from foreign countries?
Why is Russia accumulating so much gold and silver.
Why is China accumulating so much gold and silver.
Why are central banks increasing their gold reserves.
Why are none of the above buying existing crypto but investing in blockchain tech research (spoiler - to release their own state issue crypto in the near future)