The "debasement trade", the decline in the purchasing power of USD, in one chart since 2020:
Bitcoin: +1400% Silver: +182% Nasdaq 100: +176% Gold: +166% S&P 500: +102% In gold: NDX +4%, SPX -24% In Bitcoin: NDX -84%, SPX -89% Source: Global Markets Investor @GlobalMktObserv
Mighty Dollar...
The dollar index $DXY is taking out range highs, closing well above the 50 and the 100 day moving averages. We haven't seen the DXY close "properly" above the 100 day since the dollar bear started earlier this year. Not good short term news for the gold and precious metals space. Source: The Market Ear
SPDR gold ETF $GLD went crazy yesterday, seeing $12.5b in volume, easily most in decade
(for context that's more than most of the Mag 7 traded). Only other time it's been that high was in 2013 during the Greek debt crisis h/t @Todd_Sohn Source: Eric Balchunas, Bloomberg
Same same... Below is a 30 min chart of the Nasdaq index and gold since September....
Stocks and gold have moved in close tandem over the past weeks when the last squeeze started. Slightly illogical given the fact gold is, at least partly, a fear hedge. It could be that the same short term money is just chasing momentum, irrespective of "logic". Source: The Market Ear
When geopolitical & socio-economic tensions rise, both people & nations turn to hard assets.
One big buyer in particular has been Beijing. China has been swapping Treasuries for gold for years, lifting reserves to over 74m ounces. 👉 This is a reflection of both state policy and popular sentiment: hedging against dollar risk, sanctions, and China’s own shaky property and stock markets. Source: Chamath Palihapitiya @chamath, Steno Research, Bloomberg
Gold is now above $4,000/oz, and who would’ve thought silver would remain this cheap relative to gold?
Source: Tavi Costa, Macro Trends
Gold vs stocks
Source: Bloomberg, Tracy Shuchart (𝒞𝒽𝒾 )
Bitcoin will become a “pillar of financial security,” like gold, and be included in international monetary institutions' official reserves by 2030, per Deutsche Bank.
Source: Bitcoin news
