I woke up today, Saturday, at 5am and decided I needed to dump out my thoughts on Gold.
Because I’m tired of reading the same old bullshit articles from the mainstream media.
They don’t really tell you anything of value to help you invest or manage your finances.
So before you rush out and buy gold because Warren Buffet just did…
Or because the gold spot price soared past $2,000 for the first time ever, hitting a new record-high on August 6th…
Let’s just hit pause and educate ourselves for a second.
Breathe. Pause. Count to ten please. Relax.
I would argue that Gold’s recent price run-up has been caused by the global pandemic.
Which has put the world into an overnight recession. Heading towards an eventual global depression.
Followed by a long-term “K” shaped economic recovery. (Some things go up and others stay down)
In this series of posts, our goal is to explain economic concepts so you can better understand the risks to your assets, whether you hold them in cash, stocks, mutual funds, real estate, or gold.
In a previous post, we discussed how the trillions of dollars in new money being injected into the U.S. economy by the Federal Reserve have sparked fears of an inflationary disaster. But while inflation could become a problem in the not-so-distant future, economic history suggests there is a more pressing—and perhaps more dangerous—concern: Deflation.
In simple terms, deflation is a drop in the prices—as opposed to inflation, where prices rise. The economic phenomenon can be caused by an increase in goods and services, a decrease in the supply of money and credit, or—as is the case during this pandemic—a decrease in demand.
If falling prices sound like an attractive scenario, think again. While a moderate drop in prices can promote consumption...