The bubble is bursting and gold is strong

“The highest nominal yield, that is. With inflation running at 7.1%, the real yield is -5.3%, a new 50-year record, lower than the two spike lows of 1974 and 1980, both of which corresponded with epic gold bull markets. The fact that gold hasn’t gone parabolic, yet, prompts a deeper look into what drives gold prices.”

USAGOLD note: Oliver inquires into gold’s rangebound behavior under these extraordinary circumstances and concludes “what propels gold into the multi-thousands of dollars per ounce—is sharply rising rates that destroy the value of the Fed’s assets and make further federal deficit spending impossible. Without a political reason to buy the dollar, it will seek out its economic value.” It’s all in the math ……