Irrespective whether “taper” is early or later, I will prefer to use the September crash (if any) in gold to invest for Diwali and Christmas. Normalization (maskless world) after the booster dose of the coronavirus vaccine will be the next big theme (after taper). To me the real coronavirus vaccine is the so-called booster dose. Central banks will continue their hyper cautious approach to asset bubbles till there is evidence that the world is covid free. Drunken man theory will be there in all asset classes and not just precious metals.
Crypto currencies are getting greater acceptance with passage of each day. Hard assets like physical gold and even land or homes will benefit from the greater acceptance of crypto currencies. People are using crypto currencies to buy physical gold. The upcoming trend of using crypto currencies to buy physical gold will rise every day, every week and every month. I expect crypto currencies to be used for purchase of groceries and home as well.
Central banks have started feeling the heat of mass acceptance of crypto currencies. As a result, they are on the verge of issuing digital currencies. States and nations will never accept anything which does not give them high taxes. Digital currencies will make us slaves of the state, nations and rogue politicians who consider the masses as cattle class. Privacy is almost nil for most of us. For example, I search the review of anything on google and my facebook page, email, sms and browser all get flooded with advertisements related to that product. Central banks will use digital currencies to change our consumption pattern and spending habits. The world will see a very big change in the next five years. The sum is that our lives will be dictated by central banks and a few large corporations. 5G will also change our lives upside down. Physical gold is the only hedge against the state imposed control on us.
Price moves in gold and silver after NFP (3rd September) and FOMC (22nd September) can give some nice short term trading opportunities. Good investment return can be generated by intraday trading in bullion.
One should ignore the central bank and their speakers. They are manipulators. Federal Reserve chairman Powell's speeches this summer reflect that he is doing everything to get a second term. Elections in Germany and Canada this month and the long term impact of Taliban control of Afghanistan will be supportive of bullish gold prices.
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