The Powerful Dynamics Behind Gold


The dollar has been weak lately, bumped off its perch for a moment by strengths in the global economy working against its value, and also by the Fed’s unashamedly voluminous minting of new trillions.

Investors who dismiss individual factors behind gold’s renewed potential miss their unique nature, and their combined strength.

This is what smart investors will do with gold, and why gold has regained its luster.

The shiniest, most glittery object to catch your eye, however, will be gold. With the hallmarks of the 1970s bull run and far more in support of that bull having huge horns this time around, it really is the moment to get into gold with Birch Gold Group.

The Fed’s second favorite occupation nowadays-after printing the trillions that are now afloat in the American economy-seems to be downplaying fears around the dollar.

Although Fed officials have said that any inflationary spike from having their hand so firmly on the tiller would be brief, it’s hard to take that at face value.

It’s coming from the crowd pushing the very strategy that’s currently risking fiat’s value in very real ways.

The Fed has made it clear that its infinite liquidity injection will be just that-infinite, or at least until figures are old-school rosy for a protracted period of time.

This stance is likely to push gold’s price upwards evermore, and early investors have already started getting onto the train.

What’s the official forecast?

Gold’s value is forecast based on a few considerations, with the most relevant and impactful being the USD. 

In a predictable inverse relationship, gold and the dollar are opposite ends of a magnet.

If one rises the other dips and looking at the dollar recently, that bodes well for gold.

Figures show that investors’ money has been moving into gold from their dollar holdings. If Uncle Sam tanks, the gold price could see its panic value skyrocket.

Last annual figures show less than a 0.3 percent move for the USD (its tiniest ever) while in the same period gold grew by 18 percent. The omens are clear.

It’s not only fear that’s driving gold’s value.

The Basel III ramifications are a huge boost for gold’s currency and, by implication, its value. Although not an official return to a gold standard of substance, the accord is an effective return.

Gold has been our store of value for thousands of years, and several combined factors are today coming together to reinvigorate our raw desire for it.

Ever the haven of jumpy markets, it’s also been a vague mistress at times, its dividends eluding many investors who just couldn’t quite wait for gold’s cycle.

It’s long-term, but it’s always gone up, and up again.

Looking at gold’s history and current circumstances, the correct question for diligent investors to ask would be, why wouldn’t gold’s value show handsome returns in, say, five years?

Things are often easier to see when you search for reasons why not, and in this case, they are few and weak.

With such insistent forces pushing at gold’s value, it’s Bitcoin all over again, staring investors in the face.

Looking across big hitters of the investment landscape right now, there are a small number of assets with their noses clearly pointing to the sky.

While legacy investing doesn’t rate DeFi yet, yield farmers are gleaning good returns there, and some tech and crypto projects catch the eye.

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