The real reason why gold has stumbled

Daily Reckoning/James Rickards/6-6-2022

Image of newspaper headline featuring 'Gold, dollar'“When this panic hits and the dollar is deemed no longer reliable, the world will turn to gold. Frustration with the sideways movement of gold prices is understandable. But behind the curtain, a new liquidity crisis is brewing. Investors should consider today’s prices a gift and perhaps a last chance to acquire gold at these prices before the real safe haven race begins. Gold is so cheap right now, it’s practically a steal.”

USAGOLD note: The stronger dollar is translating to a buying opportunity for Americans on a whole host of consumer items – gold being just one of them. But, as has happened in the past (sometimes formally, sometimes informally), the dollar will need to go lower against its rivals at some point in order to balance the international monetary equation. Precisely for that reason, gold and silver’s price histories have been given to long periods of sideways action followed by sudden price spikes. When the wheel turned, it turned decisively.

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