Gold edges higher as investors exercise caution ahead of Fed
Real estate mogul Sam Zell elaborates on the reasons for his newfound interest in gold

(USAGOLD – 11/1/2021) – Gold edged higher this morning as investors exercised caution ahead of this week’s Fed meeting. It is up $3 at $1788. Silver is down 3¢ at $23.92. Analysts are up in the air on how the Fed is likely to approach mixed signals on the economy, as well as a growing sense that whatever it does, it could roil already unstable credit markets. (See “Hedge funds seen facing heavy losses” below.) The overriding concern has shifted to stagflation, a situation particularly nettlesome for central banks in that any policy response meant to address a slowdown exacerbates the inflation problem – and vice versa. The Wall Street Journal said this morning it expects the Fed “to seek a middle ground” –  “monitoring inflation risks” but not being worried enough “to pivot toward tighter money.”

You might recall real estate mogul Sam Zell announcing earlier this year that he had begun acquiring gold for the first time in 80 years. In a recent interview posted at the VCU News, interviewer Andy Florence asked about what prompted his interest in the metal. He began by recalling his family’s escape from Nazi Germany and the role “liquid assets” played in attaining its freedom. “The day my father died,” he said, “he had a safe deposit box full of diamonds and gold – not so much – but the point being, a refugee’s ready to go forward. So from my perspective, the assault on fiat currencies is somewhat disturbing. I don’t think that I’m ever going to get enough gold exposure to have any meaningful – nor would I want it – percentage of my net worth. But at the same time, when I see the kind of printing that’s going on, the idea of starting to put together a pool of liquid resources, mostly because I don’t know what happens. The world changes and there’s time for certainty.”

Chart of the Day
Gold and silver price
(% gain, October 2021)

overlay line chart showing gold and silver percent gains for October 2021
Chart courtesy of TradingView.com • • • Click to enlarge

Chart note: For the month of October 2021, gold gained 2.57%, and silver gained 6.43%.

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