Sandman
Stock Trader
Gold and silver are worth owning because paper claims now exceed physical metal by a breathtaking amount. @BullionNation adds that the US Treasury plans to buy long-term Treasuries private investors no longer want, to keep yields from rising, with the money ultimately created by the Fed and inflation set to soar. x.comÂ
Gold and Agnico Eagle look like a chance to buy near the bottoms as rate expectations ease. @ResGeoPol notes softer inflation and retail sales data knocked back the aggressive Fed hike pricing built up over the summer, with year-end futures rolling over toward the current target; lower rate expectations cut the opportunity cost of holding non-yielding gold. Miners have already made big percentage moves off recent lows. x.comÂ
Gold should benefit because the US Treasury and the Fed will do whatever it takes to bring long-term bond yields under control and save confidence in the dollar. That means de facto money printing through new short-term debt, swap lines to governments hurt by the Iran war and buying foreign currencies so holders don't sell US debt. These actions are inflationary, making crypto and gold the assets to own. Stocks can keep rising for a while but may not stay the fastest runner. x.comÂ
Gold is extremely attractive now because rising market fear could make it a great hedge. It has fallen nearly 30% from its January all-time high and returned to the accumulation zone. If this level holds, expect a bounce soon. x.comÂ
There is no reason to hold gold. x.comÂ
Gold is a forever asset because money can be printed, while gold was there before money and will remain after it. Diamonds, by contrast, are finished now that De Beers' monopoly has been exposed. x.comÂ
Gold can go much higher over time, possibly to $10,000 eventually, because currency debasement is real, governments are not becoming fiscally disciplined and debt is not disappearing. The recent quiet after a 15-20% pullback changed only the price, not the fundamentals. Still, gold produces nothing and can do little for years after speculative runs, so it may protect wealth while great businesses compound it, which makes productive assets the preferred vehicle. x.comÂ
Gold-making machines are real, undermining gold's scarcity. Gold goes to zero; unlike Bitcoin, whose supply is fixed at 21 million, new gold can be made. x.comÂ
Gold faces confiscation risk that Bitcoin held through memorized seed words may avoid. Americans had to surrender gold for $20.67 an ounce in 1933; a year later it was priced at $35. That risk does not overturn owning both. x.comÂ
Gold is worth accumulating steadily as a hard-currency household reserve against sudden upheaval or disaster, not as a trade. Physical bars kept in a bank vault are easier to hold than paper gold or index funds, which sell with a click. Gold's pullback from 5,400 to 4,365 meets the rule of buying early on every 20% drop, and investment bars have vanished or sold out on the apps of major Chinese state banks, possibly from heavy dip-buying. x.comÂ
Gold depends on finding a greater fool to buy it, which is increasingly problematic because bitcoin is a perfectly scarce version of gold that is portable over the internet. x.comÂ
Gold is set to take off as energy-driven stagflation traps the Fed and negative real rates favor it. Today's dovish hold was likely its last chance to hike: once the AI bubble bursts, the Fed loses that option, while current debt-to-GDP rules out Volcker-style hikes without fiscal insolvency. Per Macrotrends' chart, gold rose eightfold from its 1976 low to its 1980 high, equivalent to $32,000 gold over five years in today's terms. x.com x.com x.comÂ
