Why is it happening?
With Interest Expense soaring and US debt/GDP at 125% & rising, the only way the US can keep USTs nominally money good are via negative real rates. hence the gold outperformance. Source: Bloomberg, Luke Gromen
Central bank of India moves another 102 tonnes from London to its own vaults. It’s a trend.
Source: Times of India
GOLD RALLY HAS BEEN TRULY UNSTOPPABLE
Gold prices have hit 40 all-time highs so far in 2024, marking the best year this century. The so-called barbarous relic has rallied 33% year-to-date and is on track for the best annual performance since 1979. Source: Global Markets Investor, The Daily Shot
Gold and stocks *both* with their best YTD performance in 25yrs this year.
Not really the sort of market action that is aligned with an aggressive easing cycle... h/t @thedailyshot thru Bob Elliott on X
If the year ended today, it would be the best year ever for the Gold ETF which is up over 31% in 2024. $GLD
Source: Charlie Bilello
The gold-silver ratio continues to plummet, which adds further credence to this silver breakout and bull market.
Source: Jesse Colombo @TheBubbleBubble
Is gold already too expensive?
Lets compare the current price with various macro and market figures from the previous highs in 1980 and 2011: Source: Incrementum, Ronald-Peter Stoeferle, CMT, CFTe, MSTA
👑 INTERNATIONAL GOLD RESERVES ARE SHARPLY RISING
Global gold reserves rose to ~12% of total international reserves in 2024, the most since the 1990s. The share has DOUBLED over the last decade. Gold has also exceeded Euro as the 2nd most held reserve asset by central banks. Source: Global Markets Investor
