Loading ...This is reminding me of the 1970s when gold and silver were booming. There were no other inflation hedges. Like afterwards they created all these other options like bitcoins, ETFs etc to absorb excess funds, rather than all that excess cash going into precious metals.
In the 1970s, millions of people put everything they had into AU and AG. Eventually, the high rates crashed the PMs and all that excess money supply was evaporated in a few years. So here they are, in a similar situation, way too much excess money supply plowed into stocks etc.
So, if they raise the rates again, and it all comes down naturally, it will be another huge evaporation of money supply so they can start increase it all over again later.
Booming Stock markets: https://finviz.com/futures_charts.ashx?t=INDICES&p=w
As for Gold? They tried to stop it from closing in the $2100s. They failed. Now they will try to stop gold from closing in the $2200s. They will fail again. I’m also hearing about money managers recommending mining stocks, simply because they have been lagging the climbing Gold prices for a couple of decades. And soon, institutional investors will start buying them.
Gold 1.5 years: https://finviz.com/futures_charts.ashx?t=INDICES&p=w