One thing that seems likely as WW3 gets out of control is that all paper currencies will lose value rapidly. And the whole world, both central banks and individuals, will pile into gold.
Risk assets are selling off, including precious metals. But Gold is outperforming in real terms. Gold has broken out against Commodities and reached a three-and-a-half-year high.
The massive change in market dynamics reveals the extent to which the blinders came off about recession and some of the fantasy about soft landings disintegrated.
CB gold buying in 2023 built on the 2022 record, the highest level of net purchases since 1950, including since the suspension of dollar convertibility into gold in 1971.
Recurring issues of inflation, instability, crises, slow growth, and transparency show where Federal Reserve policies and the fiat currency system have struggled to meet their objectives.
