Gold out of the blocks quickly for 2023

Credit Bubble Bulletin/Doug Noland/1-7-2023

“Issue 2023: The year of precious metals? Precious metals were generally out of the blocks quickly to begin the new year. Metals performed relatively well last year in the face of dollar strength and rising rates. A year of currency market uncertainty, persistent inflation, and ongoing expansion of non-productive Credit would seem to support the precious metals. After a 2022 inflection point, I would expect 2023 to provide more New Cycle momentum. There will be ebbs and flows, but the cycle of hard asset outperformance versus financial assets is in its infancy.”

USAGOLD note: It is not just one, but many, bubbles we have to contend with, and the one’s that are deflating are doing so at different rates– crypto fast, China with “acute uncertainty” (for example). All” bubbles eventually burst he says. “The bigger and more prolonged the Bubble, the greater the systemic monetary disorder and associated price distortions, along with deepening financial and economic structural maladjustment. Accordingly, the more ingrained Bubble excess becomes, the more central bankers will be compelled to forestall collapse.” Obviously, he sees gold as the non-bubble.