It seems like the Gold and Silver markets have been asleep for quite a while now. We have had rampant inflation and money printing across the developed world so I have been surprised that Precious Metals haven’t been getting a strong bid as an inflation hedge. More recently we’ve had the Federal Reserve threatening to raise interest rates – which is usually bad for the metals. Yet today the metals are catching a strong bid. The question is “Why now?”, and in trying to figure it out I recall an article I wrote about 4 years ago about 3 Traditional Gold Price Drivers & How Crypto Disrupts Them
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As an Inflation Hedge the metals have not really been shining of late. I read back through my old post and the reason why could be right there in my face, in my own words. (Aside - I really should listen to myself more) Quite possibly the Crypto market has been acting as the Inflation Hedge and soaking up all that demand that might have ordinarily been put into the Precious Metals markets.
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I think the reason why the market is moving today is instead because of the Safe Haven demand. There are two things going on right now that I think would be spiking Safe Haven demand. The first is the concern over war breaking out with Russia over Ukraine. While I personally think it’s a bit of a storm in a teacup and the White House is trying to deflect away from other issues with another fear agenda, there is a possibility that a major conflict could start and that would spike demand for Precious Metals. The second reason is even bigger though….
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In Canada there has been a major trucker protest going on with street blockades and civil disobedience really resisting the governments recent overreach. This week we have seen the Canadian government actually starting to freeze bank accounts of the truckers and those who support them. Personally I find this shocking and wrong for a number of reasons, but the reality is that it is an ominous warning and example to the people of the world exactly WHY you need to get out of the legacy financial system – so that your wealth can not be frozen or stolen by an out-of-control government. The Canadians are also trying to criminalise Crypto so Precious Metals is an obvious Safe Haven choice.
Whatever the reason though, a decent rally in the metals is overdue and while Safe Haven demand can sometimes be short-lived, this recent spike might be just the catalyst these markets need to break the recent slumber.
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Thanks for the thoughts & reminders, @buggedout. Even the Ones that know, the fiat "legacy financial system", is out of control, don't really know, it's extent. One example: Precious Metals seem to be in a slump, while a current, US Five Cents, Nickel, has a $.068, base metal, content value. Or $1 Million, in Nickels, has a $1.36 Million value, in pure, refined, base metals. The canary-in-the-mine is...
I don’t think most people know enough about crypto for it to affect the gold and silver prices yet. Institutions yes, but people no. Institutions don’t want the prices high they still are buying it. So I kinda debunked that, at least in my opinion anyway.
I was in a zoom call last night with a few friends in Europe that do believe Putin is going to attack. They think this pull back is a false flag and that Putin is just waiting for the Winter Olympics to end first. But no one really knows except Putin.
People jump on metals after the price has already started it’s climb. It’s always the way it seems. Then they get pissed when it drops and sell out. Idiots
In just the last 24 hours I have noticed a significant ramp up of the war drums here in Australia. It's very hard to know what's really happening over there.
More than half the Provincial ministers disagreed with The Prime Minister's use of the Emergency act and far overstepped his authority, there's gonna be blow back.
There is definitely blow back, but will it change anything? I hope so because I know the goons we have over here would love to follow in Trudeaus footsteps.
MY bank only allows me to withdraw from the ATM the Max $500 CAD so I can't pull out my Emergency Cash Reserves as I wanted (It's more than $10K) Looks like I will send a message to the Bank $500 at a time for the next 20 days.
Can you say, "Soft Run on the Bank!" = Blow back!
Sounds like a plan. I might do that too. My ATM limit is $1K per day.
I had a bank account frozen from a creditor with basically no proof of their claim a bunch of years ago, that's when I became a real stacker. I hope people wake the fk up about keeping your wealth in a bank!
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'Quite a while' lol, like 10 years.
Thanks for the thoughts & reminders, @buggedout. Even the Ones that know, the fiat "legacy financial system", is out of control, don't really know, it's extent. Thanks to upvote love this boss❤️🌷
Ciao piacere di conoscerti
Complimenti bellissimo post!
Veramente interessante
Complimenti di cuore
Ti auguro una buona serata
@luba555
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In other words, the governments want to be in control of your money?
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Precious metals will always have a market, because you can physically hold them. It's a psychological thing for people that really makes them feel like they're holding something of value.
Unfortunately, precious metals can't be used in DeFi platforms... HIVE can though. The LeoFinance team has bridge HIVE to Polygon as pHIVE and you can earn over 60% APY with pHIVE-POLYCUB on PolyCUB.
Thanks for sharing!
Your post is four months old, do you believe is still wise to invest in gold or silver? Thanks in advance!
Something that I recently began doing is trading gold on 10X leverage. Even when gold experiences a violent move it's pretty insignificant. However, with leverage, you can profit on intra-day action without worrying about extreme corrections, which in Crypto would ultimately cause a liquidation.