Gold Market Update—Set to Soar as Hyperinflation Looms
The comments below are an edited and abridged synopsis of an article by Clive Maund
Gold will go ballistic as the US dollar collapses. The dollar is being destroyed by the Fed, which is creating fiat in quantity in order to buy distressed assets cheaply, paving the way for the digital dollar. We are at the end of the fiat endgame, a time when money creation goes vertical, leading to it becoming worthless, as happened in Venezuela and Zimbabwe. Of course, hyperinflation is a great way to pay off debt because you can do so with worthless currency.
There are two worries on precious metals investors’ minds: One is that gold and silver won’t rise much because big banks will cap it by dumping it onto the paper market. The other is that cryptos are stealing gold’s thunder and siphoning off funds that would otherwise go to precious metals. Maund explains why these two things are irrelevant.
While cryptos may be screaming higher, there is a misplaced belief that you are outside the system when you buy cryptos, but you won’t be if they decide to pull the plug on the internet, which they may do: It is the only way to find out the truth about what is going on. At least with precious metals, you own them and they will not disappear if banks close their doors or the internet is taken down.
Maund looks at charts for gold and says: “With hyperinflation fast approaching, it doesn’t look like gold will have the luxury of a long period of time to lazily form a handle to complement the cup; instead, it could simply go straight up in a giant slingshot arc.”
Charts for the US dollar look frightful; hardly surprising considering what the Fed is doing to it.