When the price goes parabolic in a short space of time, it should be no surprise when there’s a pull back. I even considered shorting silver, but was too chicken.
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Of course. I’m just curious at the mechanism(s) behind, how it happened.
It was all a hype. No one wanted to miss a golden opportunity. A modern day gold rush.
A disturbance statement is circulating, but in the end I don’t know how it affects the market
Gold prices will increase over time, as you cannot just print it out like paper money, printing a 100 USD banknote costs probably like 50 cents to manufacture or even lower, but to mine gold costs a lot. Paper money and digital money can be created (good example of digital money is crypto already), but not precious metals as they are finite, and can only be sourced from the earth.
Bottom line is anything man made like paper money, when there is a surplus will drive the currency value down, while increasing the cost of gold. So it’s safe to say that USD is like inversely proportional to some fractional value of gold.
Predicting gold price its difficult after a few years, but we can estimate first how much the dollar’s strength would decrease, given the Middle Eastern conflict, impact to the global oil supply, there is definitely a economic financial disaster or simply a financial crises heading our way in the near future if the conflicts in the Middle East continue for a long period of time, it will effect the global economy. If the Middle Eastern oil countries stop using the petro dollar for oil transactions and pull out their stock investments, US bonds that would impact the dollar severely, will make the dollar index go down, and we would see an increase in precious metal value.
As we see from July / August 2025 onwards, when the dollar index started to decrease (pic below), evidently the gold price began to surge (pic above), so this is the inverse relationship between the dollar and gold value. And obviously as we know, printing more dollars automatically drives the value of the dollar down, which is a known fact.
This will also effect crypto market’s as well, since crypto values are proportional to dollar, stock investments trading, supply chains etc. we would see crypto declining as well together with the dollar, just my 2 cents.
Most gulf countries have pegged their currencies to the dollar.
I think Tether has accumulated one of the largest private stashes of Gold.
What? Even more than the Orangutang?
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