No DMR today (1/28/2021)


Gold pushes lower in advance of today’s Fed meeting

(USAGOLD – 1/27/2021) – Gold pushed lower in advance of today’s Fed meeting wrap-up and press conference. It is down $11 at $1842. Silver is down 32¢ at $26.23. Wall Street generally anticipates the Fed will remain steadfastly dovish. Anything less could easily unleash primal market forces it would rather keep in check. Investors are already on a knife’s edge if physical precious metals demand is an indicator. “Nobody doubts that the gold rush is a side effect of an unprecedented healthcare crisis, forcing governments to throw the financial manual away,” reports Alex Katsomitros in World Finance magazine. “Gold is the world’s oldest safe asset, always thriving in times of uncertainty. Historically, investors have reverted to it as a hedge against political and economic tumult, with its price jumping during wars, contested elections, and economic crises. During the Great Recession, gold’s price trebled from early 2007 to 2011. The same scenario is now repeating itself.”

Chart of the Day

line chart showing two monetary eras 1915-1971 and 1971-2020

Chart note: We have had quite a few new visitors over the past several weeks looking into gold for the first time. This chart, more than any other, we feel, is central to understanding why gold continues to make sense as a long-term portfolio holding. When the United States abandoned the gold standard in 1971 and freed currencies to float against the dollar, the fiat money era began. We are still in that era today. This chart shows gold’s performance from the early 1900s to 1971 when gold backed the dollar and the era from 1971 to present when it did not. Gold has had its ups and downs since 1971, but clearly, over the long run, in the absence of an official gold standard, individual investors have been well-served by putting themselves on a private gold standard.

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