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(Zero Hedge)—By Eric Peters, CIO of One River Asset Management
“Let me start with the psychology that governed the gold market for years,” I said. It was our IC meeting and the topic of gold’s recent outperformance versus bitcoin came up. “When Bernanke unleashed QE during the GFC, a lot of very smart people rushed to hedge themselves against a massive monetary inflation. Gold was an obvious hedge, and the Baby Boomers were in their investing prime back then. They felt highly exposed to an inflating-away of their life savings. They already owned homes. Many bought gold. Some bought far too much.”
“Republicans prevented Obama from the wild stimulus spending he sought. And China’s deflation-exporting economy was still being brought online in the aftermath of its WTO ascendance. Plus, Beijing pumped it up through massive subsidies/stimulus. There were surely other reasons why inflation didn’t take off back then. Expectations remained generally stable. And despite Europe’s response to an existential sovereign debt crisis, and Draghi’s 2012 commitment to do “whatever it takes”, the Germans never let spending get out of control.
“Gold peaked in the summer of 2011 at over $2500/oz and turned lower. By 2015, it had fallen roughly 40%, back to the $1400 level it hit in March 2008. All these Baby Boomers with gold buried in their backyards were gutted. They prayed that if they ever got back to the highs, they’d sell. We’ve all prayed like that. Every one of us. Those who held until July 2020 got the chance to sell again near the 2011 highs at $2400. Covid stimulus sparked that rally. Some sold. Gold fell. The holders begged forgiveness. Then sold. Gold fell 30% over 2yrs.
“Baby Boomer bulls eventually lost faith. Many needed cash, they were retiring. Some got bearish gold and pointed to the EU’s confiscation of Russia’s foreign reserves following the Ukraine invasion. “If gold couldn’t rally on that, then would it ever,” they asked. The last disillusioned bulls sold their final ounce. Then gold started rallying. It has not looked back. That’s what can happen to a market once you clean out the remaining stale positions. A clean market can really move, given a clear fundamental catalyst; gold has at least two.
why oh why did gold decouple from gold ETFs in 2022, just as central banks unleashed a record gold buying spree pic.twitter.com/qFb0ZCPOF4
— zerohedge (@zerohedge) April 17, 2024
“The confiscation of Russian assets means governments will increasingly diversify their foreign reserves into non-sovereign assets. Gold is one. And now that China is committing to stimulus, every major economic zone appears to be doing the opposite of austerity. So, in a world of potentially infinite fiat, scarce assets should appreciate. Gold has. It’s +40% over the past 12mths. Bitcoin is +134% over that period. But for the past 7mths, Bitcoin has chopped around in a 30% range (13% below all-time highs), while gold continued upward. Why?
When Bitcoin hit $59k in Apr 2021, the bullishness was insane. It fell nearly 50% through that summer and made new highs around $65k in Nov 2021. Then it collapsed to the $15k area on the FTX failure. A material portion of bulls who endured that net worth crash prayed to God that they’d sell some, most, maybe even all (probably not all, this is crypto) if they ever got back to the highs. Bitcoin hit $72.75k this Mar. There’s been selling into every market rally since, even as clear fundamental catalysts appear (the same ones as for gold). And as this happens, market positioning gets cleaner.
Most Accurate Pollster From 2020 Drops Final Numbers
by JD Rucker
Atlas Intel, which was hands down the most accurate public poll during the 2020 election, just dropped its final poll of the season. It points to landslide victory for Donald Trump. If Kamala Harris is able to win Minnesota and Virginia, two blue states that are in jeopardy of being…
A Kamala Harris Victory Means Green New Deal Lawfare
by Daily Signal
Expect Kamala Harris’ Justice Department to wage Green New Deal lawfare if she is elected president on Nov. 5. As with every last issue pertaining to this election, Harris has not said much about the substance of her climate policy. But a review of her record suggests she’d be amenable…
The Moral and Spiritual Issues That Demand Our Votes
by Harbingers Daily
As a pastor and a preacher, I want to urge all Christians this election season: Get out and vote. I believe it is our duty as citizens of our state and country, but I also believe it’s especially important given the issues represented in this election. Many of these are…
No Matter the Final Vote, This Election’s Biggest Loser May Be the Legacy News Media
by Just The News
In the sultry days of summer 2020 as Donald Trump contemplated a second term, his aides engaged in a quiet conversation with members of the emerging digital media about an audacious idea. The goal was to bypass the traditional news media who monopolized the White House Correspondents Association press room…
Democrats Unveil Dark, Diabolical Plans to Prevent Trump From Retaking White House – Even if He Wins!
by WND
With results from the 2024 presidential election now imminent, Democrats have been vocal in their plans to subvert the will of the American people and prevent former President Donald Trump from retaking the White House if he pulls out a win over his Democratic rival Vice President Kamala Harris. In…
Trump Doesn’t Rule Out Banning Certain Vaccines if He Wins Election
by The Epoch Times
Former President Donald Trump in a new interview did not rule out banning some vaccines if he wins the upcoming election. “Well, I’m going to talk to him and talk to other people, and I’ll make a decision,” Trump told NBC over the weekend when asked if banning vaccines would…
Trump, Republicans Pin Hopes on Record Early Voting in North Carolina
by Jeff Louderback, The Epoch Times
(The Epoch Times)—In his final North Carolina rally of the 2024 campaign, former President Donald Trump predicted he would win the state where he prevailed in 2016 and 2020. “North Carolina’s reliable for me,” Trump said at Dorton Arena in Raleigh, the first of four stops on Election Day Eve….
If Godly People Don’t Vote, Godless People Will: The Christian Case for Voting
by The Blaze
Do Christians have a spiritual responsibility to vote? Allie Beth Stuckey of “Relatable” and the senior pastor of Lakepointe Church, Josh Howerton, believe the answer to that question is a resounding “yes.” “I’ll gently venture out on a limb,” Howerton tells Stuckey. “I think Christians have a spiritual responsibility to…
Here’s Proof the FBI Protected Biden in 2020, and Why Congress is More Important Than the White House
by PJ Media
You won’t find it reported on the A-section pages of the New York Times or the Washington Post even though it is quite likely the most significant report produced by any investigative committee in Congress since the Church Committee in 1976. For those who need a refresher, the investigative committee…
The Media Made Sure This Election Was Never Going to Be Free or Fair
by The Federalist
The corrupt news media lied to voters on behalf of Democrats over and over ensuring an unfair election. How can we ever return to normal? It’s truly awe-inspiring to watch the news media berate Republicans, down to the very end, over the “free and fair” election we’re most certainly not…
“It’s Not Going to Be Close”: Mark Halperin Says One Key Voter Group Will Decide the Election
by Harold Hutchison, Daily Caller News Foundation
(DCNF)—Journalist Mark Halperin said on Monday that the turnout of women would decide the presidential election between former President Donald Trump and Vice President Kamala Harris. Trump leads Harris by 0.1% in a head-to-head matchup, according to the RealClearPolling average of polls from Oct. 11 to Nov. 3, with Trump’s…
It Was the Night Before the Election, and Everyone Was Freaking Out
by Michael Snyder
(End of the American Dream)—I have never seen so much doubt, worry, anxiety, fear and panic as we approach a presidential election. All over the country, people are freaking out right now. Democrats are freaking out because the early voting numbers are so dramatically different from 2020. Republicans are freaking…
