Precious metals (Gold, Silver etc) hitting new highs.


Robinhood investors also piled into Hertz after it had already gone bankrupt in spite of being told they’d probably never get their money back.


GOLD breeched the $1900, currenlty hovering around $1905.


Could some of this rise be due to the fact that many gold mines shutdown for a while at the start of the COVID outbreak causing an interruption to supply?


I don’t know but I doubt it. The global store of gold only increases by about 1.5% per year, and only 7.5% of that 1.5% is used by industry. All the rest is bought by Central Banks, investors, and jewellers.


Not much resistance all the way to $24/$1930 this morning


Touched $1975 / $26.15 earlier today before pulling back


Ten years ago gold had a similar frenzy in anticipation of inflation caused by money printing after the GFC. It never materialised. Central Banks had a hard time creating any sort of inflation. This is going to be repeated. Where is inflation going to come from in a recession with people losing their incomes left right and centre? If you bought gold ten years ago and held, you lost 40% and took ten years to get back to par. The same is going to happen again.


If they gave some money to people (no strings attached) they’ll get a bit of inflation going!
But they won’t do that as people will realise that money is just tokens as opposed to a virtual store of wealth.


A token gesture no less!



If you bought Irish banking shares before 08 you were effectively wiped out and are showing no signs of getting back to par ever.


Hey, I’m not claiming there aren’t even worse things to buy than gold! :smile:
Tesla shares, for instance. :ninja:



Gold is up about 20% against the USD since 1Apr and about 15% against the EUR

Gold is up around $100 in the past week, or about €55.

This says a lot more about the USD that about Gold.

There is a Fed meeting this week, and new stimulus packages are to be announced soon. A glib remark I saw on twitter said the Republicans want the money printers to go Brrrr, but the Democrats want the printers to go Brrrrrrrrrrrrrrrrrrrrr.

Either way Gold is going up vs the USD.


Comments are rather LOL! :rofl:




Fed held. Quel surprise.


I would argue it’s different this time!

Gold peaked about 3 years into “the Great recession.” We are only beginning this recession.

Also the Fed/ECB balance sheet is significantly more levered now than it was in 2011.

The price of gold will rise until it backs the liabilities of the Federal Reserve by at least 100%. This means gold will need to reach 12,000 USD.

But we will have a significant period of stagflation first.

Maybe. :joy:


Why does is gold needed to back the Fed liabilities 100%? I would have thought the Fed had other assets not only gold.

Genuinely curious. Not well-informed enough to understand.

Here’s another question - at a time of prolonged repression of economic activity (“second peak”, local lockdowns, distancing, masks in shops and restaurants, empty cities, quarantines, travel restrictions, other confected bollox etc,) combined with massive monetisation of debt (EC borrowing the funds for €350 billion of grants - definition of unsecured debt!) surely stagflation is a certainty in the short term?


I think the causality rate is running high last count, so less than they use to, ya dig? :wink:




Hmmm, very interesting Mr @syberspud advising 2K over my Jan 8th prognostication :ninja:

Fun times ahead so! :icon_eek::dipso: