How about that stock market!

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Dow down big today, but gold up to $3,400. I wonder how much longer gold can continue to rise. This is wild.
 
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Geo said:
It will keep going up as long as the DXY is under pressure.

We might see like dow and gold price.
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The DXY is irrelevant. Inflation is more relevant but the real key is that gold is insurance against geopolitical and financial market upheaval.
 
Bad Brain said:
The DXY is irrelevant. Inflation is more relevant but the real key is that gold is insurance against geopolitical and financial market upheaval.
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I disagree, lack of faith in the US dollar is the impetus for higher gold prices.

Where as the US dollar used to be the safe haven for money leaving the stock market, it's now crypto and precious metals.
 
Geo said:
I disagree, lack of faith in the US dollar is the impetus for higher gold prices.

Where as the US dollar used to be the safe haven for money leaving the stock market, it's now crypto and precious metals.
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What's the evidence for that?
 
Bad Brain said:
What's the evidence for that?
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The rising 10 year yield, it keeps going up but the dollar is still going down.

This has not ever happened, if people were buying treasuries, the DXY would be higher.

The US dollar is no longer the safe haven it was, gold is now.

Keep an eye on the gold price, if it goes up sharply, the dollar is in real trouble and better get your cash out of the bank.
 
Well, I don't believe crypto is a safe haven for savings, but it can be good if you want to speculate.
 
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BABMusic said:
Well, I don't believe crypto is a safe haven for savings, but it can be good if you want to speculate.
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When money leaves the stock market, it has to go somewhere. It doesn't just disappear.
 
Geo said:
When money leaves the stock market, it has to go somewhere. It doesn't just disappear.
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Yeah, and that's why I put a lot of my savings in gold stocks last year. Some in Money Markets, but the rate you get is usually less than inflation is per year. I'm not a fan of when times become like this, but you do what you have to do.
 
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BABMusic said:
Yeah, and that's why I put a lot of my savings in gold stocks last year. Some in Money Markets, but the rate you get is usually less than inflation is per year. I'm not a fan of when times become like this, but you do what you have to do.
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That's a good plan right now, I am sure that has worked well for you so far.

You would have done well buying bitcoin also.
 
Geo said:
That's a good plan right now, I am sure that has worked well for you so far.

You would have done well buying bitcoin also.
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Yeah, I should have bought when it was 30K a few years ago. I sold all my Ether right when Biden took office. :doh: Should have bought XRP before this Spring. But, you live and learn.
 
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Geo said:
The rising 10 year yield, it keeps going up but the dollar is still going down.

This has not ever happened, if people were buying treasuries, the DXY would be higher.

The US dollar is no longer the safe haven it was, gold is now.

Keep an eye on the gold price, if it goes up sharply, the dollar is in real trouble and better get your cash out of the bank.
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I think you're wrong on all counts. 10 year is going up because of inflation, not lack of demand. The dollar is in the middle of it's 20 year trading range against other the other currencies. No other currency is going to replace the dollar anytime soon. Gold already is up sharply, just like 2008-2010, and for the same reasons. People want to own gold in times of uncertainty.
 
Bad Brain said:
I think you're wrong on all counts. 10 year is going up because of inflation, not lack of demand. The dollar is in the middle of it's 20 year trading range against other the other currencies. No other currency is going to replace the dollar anytime soon. Gold already is up sharply, just like 2008-2010, and for the same reasons. People want to own gold in times of uncertainty.
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Only a small fraction of Americans buy gold, probably less than 2%.

The price of gold is going up because other countries are not buying treasuries and buying gold instead.
 
Geo said:
Why large sums of gold and silver are being shipped back into the US is anyone's guess.
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My guess is that it's the US government under Trump. Hence, I wouldn't bet against the dollar so fast...
 
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Bad Brain said:
My guess is that it's the US government under Trump. Hence, I wouldn't bet against the dollar so fast...
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The world is trying to leave the dollar.

Will they be successful? That's anyone's guess.
 
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