Bond worries and gold

Goldmoney Insights/Alasdair Macleod

“We have a contemporary example. At the time of the Lehman crisis the price of gold declined from $1,000 in March 2008 to $700 the following October, before rising to $1,920 three years later. But this time is likely to be different, because the rate of monetary inflation before the Lehman crisis varied little in the preceding few years, compared with subsequently. Following Lehman, all major central banks expanded money quantities very rapidly, so the next crisis comes against a background of already inflated currencies before a further acceleration in supply. Depending how the next credit crisis evolves, there may not be a dip in the gold price at all.”

USAGOLD note:  A theme seems to be emerging at year-end and it revolves around the bond market. For those who understand the complexity and opportunity in the current monetary muddle, waiting for a price drop in the price of gold to shore up (or start) your holdings might not be the best strategy.

Repost from 12-28-2019

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