Gold is a monetary metal. As such, it trades in line with the world’s other major currencies. When the US dollar — the global reserve currency — declines, gold will usually rise…and vice versa.
Over the past 100 years, the financial establishment has done its best to remove gold from the financial system. That’s because, in its ultimate representation as debt-free money, gold represents an existential threat to government-controlled fiat currency.
Despite gold no longer being a part of the commercial banking system, it still plays an important role in the larger, central banking system. It represents the ultimate form of trust, and it has no counterparty.
For that reason, The Rum Rebellion strongly advocates that gold should be a part of all investor’s portfolios. However, we are not gold bugs. We believe there is a time to own gold and gold stocks and a time to stay away.
We’ll write on the topic of gold and currencies (including the Aussie dollar) often, and keep you up to date on where we think gold is sitting within the bull/bear cycle.
What I haven’t talked about so much is the silver price. But it’s now starting to get sucked into gold’s orbit. Overnight, the price of silver surged to a 12-month high in US dollars…
If no one else is going to start questioning their motives, then we certainly should. Because you really have to wonder, don’t you? What is the point of ongoing rate cuts? If it’s to revive…
How do you repair an overleveraged balance sheet? You either sell off assets to pay down debt, or do a capital raising to increase equity. The global economy can’t sell assets to itself. So that…
Today, I continue my investigation into the gold market. As you may know, I recently released a major report on a little known — but potentially huge — development in the gold space.
If you’re interested in gold and getting some gold stocks into your portfolio, this is a really important read. That’s because there’s an aspect to the gold story that just isn’t widely known right now.
Trump sees China and Europe as currency manipulators, and he wants to play the game too. Gold will be the only winner in this war.
If you think there’s potential for gold to stay above AU$2,000 and then go on to AU$3,000 or even higher over the next few years…what’s the best way to buy and hold some bullion?
Right now, you’re seeing a nice little correction play out in the gold price. That’s to be expected after such a strong run. I think gold’s move is only just getting started.
I warned you last week that gold was at risk of a correction. And in early trade, you’re seeing that correction kick in. After opening at US$1,410 an ounce, gold immediately plunged to below US$1,390.
A general rule of charting is that the longer a stock or asset spends in the accumulation phase, the bigger its move will be when it finally breaks out.That’s why I believe you’re set to…