Based Underground is now a conservative news aggregator AND curated newsletter.
(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.
Afghan Who Plotted Election Day Terrorism Was a CIA Contractor
by Headline USA
It looks like the FBI may have entrapped a former CIA contractor in a plot to commit a terrorist attack on Election Day. The Justice Department announced this week the arrest of Nasir Ahmad Tawhedi, a 27-year-old Afghan man, alleging that he was planning an Election…
Last day for the special on long-term storage beef. Save 35% with promo code “JDR” at Prepper All-Naturals.
Genetically Modified Crops: A Growing Threat to Health and the Environment
by Olivia Cook
(Natural News)—Bioengineered foods and genetically modified organisms (GMOs) are commonly confused with each other, but they have different meanings. “Bioengineered” describes food and products that are enhanced with scientific techniques to add particular traits. In contrast, “GMOs” involve changing the genetic makeup of animals, plants or microbes in ways that…
United Nations Expands into “UN 2.0” to Turbocharge Sustainable Development Goals
by Liberty Sentinel
The United Nations (UN) has not gone rogue, argues journalist Alex Newman on American Family Radio’s show, At the Core , but they have always existed to achieve one goal: one-world government. This goal is not only un-American, but it is unbiblical. Newman and AFR host Walker Wildmon also dive…
Congressman Matt Gaetz Says Epstein Was Killed as Part of a ‘Foreign Operation’
by Modernity
Republican Congressman Matt Gaetz says sex trafficker Jeffrey Epstein was killed as part of a ‘foreign operation’, but refused to divulge which government was responsible for his death. Gaetz made the comments during an appearance on Benny Johnson’s show. In August 2019, Epstein was found unresponsive in his jail cell…
DOJ Takes Aim at Breaking Up Google
by Infowars
On Tuesday, the United States announced potential plans to request a court mandate directing Alphabet Inc to divest significant segments of its operations, including its Chrome browser and Android operating system. This move aims to dismantle what is described as an illegal monopoly held by Google in the online search…
Is Gavin Newsom Hoping that Kamala Harris Loses the Election?
by American Greatness
Two minutes of airtime during the Democrat National Convention in Chicago gave California Governor Gavin Newsom his latest opportunity to build his national stature. As part of the announcement of Kamala Harris’s clinching of the Democrat presidential nomination during a symbolic roll call of state delegates, Newsom portrayed Harris as…
Is It Time for a Nationwide Ban on Fluoridated Water?
by Natural News
Do community leaders reserve the right to mass medicate every person in their community using the water supply as a vector? What if that medicine was eventually exposed as a POISON decades later? What if that POISON was damaging the brains of children and stunting the cognitive development of the…
GOP Rep. Luna: We Need to End FEMA Migrant Spending and Boost Disaster Relief Funding
by Breitbart
On Wednesday’s broadcast of the Fox News Channel’s “Ingraham Angle,” Rep. Anna Paulina Luna (R-FL) stated that FEMA’s funding for migrants should be zeroed out at once and that while there is FEMA money for hurricane victims, we should also boost emergency relief funding “that will go directly to Americans…
Earth’s Continental Crust in America and China Is Breaking Apart
by End Times Headlines
Researchers, who have been studying the dramatic changes in the continental configurations of Earth over the past billions of years, have made a stunning observation: that the oldest continental crusts are disintegrating. According to experts, the Earth’s crust went through expansion and contraction and has transformed not only its positions…
“Line All Those Guys Up and Shoot Them”: Professor Says Men Who Don’t Support Female Candidates Should Be Massacred
by Daily Caller
(Jaryn Crouson, DCNF)—A professor at the University of Kansas (UK) told a class that men who would not vote for a female president should be lined up and shot, according to a video posted on X Wednesday. The university confirmed the professor is employed at UK and made the comment…