What may have been a surprise is how the fall of stocks in the last couple of days as the momentum rally in AI sputtered would pour so much money into safe havens, driving gold to new record heights two days in a row now...
For example, food stamp costs for family meals have jumped more than 30% over the past three years. Automobile insurance rates are up 26%. And rising housing costs continue to outpace income growth.
De-dollarization is only one factor currently driving gold prices. If the U.S. keeps swinging that hammer, it will become a bigger and bigger factor down the road.
On the good news side of inflation, all the news about the return of inflation has been rocket fuel for gold, sending it to its highest level ever—$2,100.
This bull run in both gold and silver is justified. In fact, both are arguably underpriced given the fact that the economy is hopelessly addicted to inflation.
China has been a very willing player having invested heavily in Indonesia, building smelters and using their technology to produce battery-grade nickel cheaply, though at a horrendous cost to the environment.
Another wildcard to throw into the question of if and when the Fed cut rates, is the $13 trillion of government debt about to roll over at higher levels of interest.
