Both gold and silver are undergoing healthy consolidation phases after their strong rallies, allowing them to reset and work off overbought conditions.
Dr. Nomi Prins kicked off the discussion by framing today’s gold rally as just the beginning of a much larger trend. She forecasted gold reaching $3,000 by the end of 2024, $4,000 in 2025, and $5,000 by 2026.
The other sweet thing about the new meltdown deal is that this time, China has agreed to force its businesses and people to buy a lot more stuff from the US, just like they agreed to last time.
Now that Team Trump admits inflation will be high enough that you’ll have to make do with less stuff, then you know the inflation problem is turning out to be a lot worse than what they told you.
Businesses will have less money to operate and consumers will have less money to spend. This is especially true because of the current broad application of tariffs to most goods and services and most countries.
Gold isn’t going to replace the dollar. But it doesn’t need to. Gold doesn’t require central banks, fiscal policy, or geopolitical good behaviour to retain its value. It’s the outsider asset, the one that doesn’t need a system to give it meaning.
The Muddle Through Economy is morphing into what will become the Stumble Through Economy. For us to expect anything other than accelerating economic change during these times would be rather naïve.
