Gold Tumbles Below $1800, Erases All YTD Gains
The paper price of the yellow rock sjust tumbled back below $1800 for the first time since early Feb…
This is well below pre-Putin-invasion levels and Gold is now underwater for 2022…
…because nothing says ‘sell paper gold’ like raging global inflation…
And don’t blame the dollar’s rise. With DXY at 100, Gold has traded at $1923, $1700, $1230, $1140, & $330
As Mike Shedlock recently noted, Gold is not an inflation hedge except in extreme cases, notably hyperinflation.
The price of gold fell from $850 to $250 between 1980 and 2000 with inflation every step of the way
Rather, gold is largely a function of faith in central banks, especially the central bank of the major reserve currency country.
Gold fell from 1980 to 2000 as there was great faith in Fed Chair Alan Greenspan, then considered the “great maestro”.
If gold is ‘bet’ on government credibility, then we suspect the 2000-year history of the barbarous relic’s ‘value’ is not different this time.
Fri, 05/13/2022 – 09:21
Source: Zero Hedge News
84 total views, 1 views today