Where are we at?
by JDH on September 26, 2020
I have no idea where we are at.
I know that the price of gold is about where it was back in July, around $1,862 an ounce, which is a lot lower than the $2,000 at ounce we exceeded on August 6. It’s been all down hill since then.
Why?
I have no idea.
Profit taking?
No inflation?
It’s true, we have been in a deflationary environment for many years (arguably all of human history) because technology is deflationary. On my phone today, for free, I have a map linked to satellites in the sky, a heart rate monitor, news, music, and everything else. 30 years ago that information would have cost millions; today it costs nothing.
So why haven’t prices collapsed?
Because government have “stimulated” to keep asset prices inflated, and here we are. If they keep inflating, gold will do well.
Will they?
I don’t see how they can’t.
But, we have the fight over a new Supreme Court judge, and the election, so things will be a bit rocky for the next two months. May be best to continue to raise cash and stay on the sidelines.
Can’t hurt, at least until we can figure it all out.
Good luck……..
Where are we at?
by JDH on September 26, 2020
I have no idea where we are at.
I know that the price of gold is about where it was back in July, around $1,862 an ounce, which is a lot lower than the $2,000 at ounce we exceeded on August 6. It’s been all down hill since then.
Why?
I have no idea.
Profit taking?
No inflation?
It’s true, we have been in a deflationary environment for many years (arguably all of human history) because technology is deflationary. On my phone today, for free, I have a map linked to satellites in the sky, a heart rate monitor, news, music, and everything else. 30 years ago that information would have cost millions; today it costs nothing.
So why haven’t prices collapsed?
Because government have “stimulated” to keep asset prices inflated, and here we are. If they keep inflating, gold will do well.
Will they?
I don’t see how they can’t.
But, we have the fight over a new Supreme Court judge, and the election, so things will be a bit rocky for the next two months. May be best to continue to raise cash and stay on the sidelines.
Can’t hurt, at least until we can figure it all out.
Good luck……..