Most investors are wrongly taught that you should own gold as an inflation hedge.
However, a simple AI (Claude, Chat, Grok, etc.) search will prove that belief wrong.
And we have written extensively about how the rising price of gold is actually a barometer of FEAR.
The higher gold moves up, the greater the fear factor.
Fear?
Fear from what?
In the case of gold, fear is one of the greatest hedges against failing governments.
Put it to the test.
Look around the world and ask yourself: “Where do I Feel comfortable/safe placing my money.”
And if you are honest with yourself, you will conclude what most governments and central banks are realizing…that the world is a very unstable place.
And that’s precisely why they are doubling down on their holdings of gold.
They also know that:
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Gold is one of the most liquid investments in the world
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And its value is priced every day for trading
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The good news is the price of an ounce of gold is the same whether it’s in London, Dubai, Bejing, Latin America, or the USA
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Converting gold into cash is simple and easy without having to worry about whether the markets are open or closed for trading.
A Classic example of all the above was when the Saudis were forced to sell tons of their gold for liquidity needs AFTER Iran bombed the crap out of Dubai and other Arab countries…knocking out their banking centers.
Gold quickly dropped from its high of $5,500 to just under $4,000.
We wrote about it in a post titled Devastating Datacenter Disruptions…It Begins (HERE).
But don’t be fooled by the naysayers who say that gold is finished.
Because if that is true then the Central Banks and governments around the world would stop buying it.
Ironically (or NOT) in addition to being a barometer of fear, gold has a way of pointing out that your dollar’s declining purchasing power has been destroyed over the last 30 years.
Case in point…Your home isn’t worth nearly as much as the prices people are willing to pay for it.
It’s just that your dollars are worth less (no pun intended).
Bottom line here?
We believe gold will get its legs back soon and will accelerate after it breaks through $5,000 again.
And be sure to take possession of it.
