In the current environment, holding some of one’s liquid wealth outside the banking system is an essential asset protection strategy. Physical precious metals cannot be digitally “lost” or canceled.
The jobs numbers are not at all to be trusted. They are the broken gauge the Fed relies upon to tighten until something in the economy, most likely banking, breaks badly.
Over the decades and centuries, the purchasing power of gold remains stable. Its higher price reflects deterioration in an inferior form of money, i.e., fiat currency.
"...imperial presidents can waste trillions of dollars and millions of lives on pointless wars, middle-class income has withered for thirty-five years while the obscenely rich get obscenely richer..."
Lower rates will cause the dollar to fall and commodity prices to rise. When positive real interest rates, which favor bond investors, turn negative, it will especially affect gold prices to the upside.
This series has forced me to rethink my portfolio. All of the various cycles suggesting a crisis must be considered along with Warren Buffett’s dictate that one should never bet against America. What to do?
