In time something will replace the dollar, just as the dollar replaced the pound sterling. But it’s a slow process and until it plays out, the US will keep the “exorbitant privilege.” Which, as I noted, isn’t always a privilege.
I’ve always stressed throughout my sixteen year analytical career that one must study the pillars of psychology and politics to truly understand the investment world. Currently, we are witnessing just how much politics affects gold and silver..
If the Northern Hemisphere was destroyed in a nuclear war, the Federal Reserve, JPMorganChase, and HSBC would get some brokers to Sydney, Rio de Janeiro, and Johannesburg to sell gold futures massively and drive the price down by at least 5%.
With the hawkish Fed jawbones having been instructed to back away from their microphones for a moment by the non-inflationary and risk ‘off’ macro signaling that came with the crisis, the ‘market relief’ play will be seen in hindsight to have been in the bag.
Adrian Day joins us to discuss how events are affecting the Gold & Silver markets.
Russia and Ukraine, supply disruptions, energy markets.
How is an investor to protect themselves in this situation?
It was clear to me the deal would never be honored. One of the biggest tattle-tales, I said, was that there was no deal. There was nothing signed. It was all hot air.
