With residential prices set to fall, a repeat of 2007-08 seems inevitable. This time, greater excesses could severely impact the economy for a decade or more.
Demand drivers for gold include rate cuts, central bank purchases, strong physical demand from Asia, rising gold ETF interest, and safe-haven demand amid geopolitical conflicts.
The gold market continues to experience tightness due to difficulties expanding existing deposits, and a pronounced lack of large discoveries in recent years.
Don’t blindly buy index funds and assume they will recover as they did in the past. Don’t get caught in a buy-and-hold, traditional 60/40 portfolio. Run away.
Finally we have something to say about it: The Fed decided to cut rates, and they cut rates by 50 basis points. Gold responded in true form and touched another record high.
