Gold's Meteoric Rise: A Stunning 28% Surge in 2024 to $2,660/oz

A weaker US Dollar makes it less expensive for foreign investors to buy gold.

Gold prices have surged dramatically in 2024, reaching a record high of $2,660/oz and posting a 28% gain year-to-date. This puts gold on track for its best annual return since 1979, raising questions about what's driving this rally amid the Federal Reserve's "soft landing" narrative.

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The First Flashing RED SIGNAL is that US Federal Debt is out of control.

Other Factors Driving Gold's Rally

Geopolitical Tensions
While global conflicts have contributed to gold's rise, they don't fully explain the sustained rally. Gold has continued hitting new highs even during periods of relative calm.

Federal Reserve Policy
The Fed's surprise 50 basis point rate cut and projections for further cuts this year have been major catalysts. This aggressive easing, reminiscent of crisis-era policies, contrasts sharply with the Fed's "soft landing" rhetoric.

Total Annual Interest costs surround U.S. Federal Debt
The ballooning U.S. federal debt is a critical factor:

• Interest expenses have tripled in 10 years, now at $3 billion per day

• Total annual interest costs reached $1.1 trillion in Q2 2024

• Federal debt hit $35 trillion in July 2024

• $12 trillion in debt added since 2020 (~$280 billion monthly)

Weakening U.S. Dollar
As rate cuts begin, the U.S. Dollar Index is declining, making gold more attractive to foreign investors.

Government Spending
U.S. government expenditures as a percentage of GDP have reached 43%, matching 2008 Financial Crisis levels and approaching World War II spending rates.

The "Soft Landing" Narrative

Despite these alarming indicators, Treasury Secretary Yellen and Fed Chair Powell maintain a "soft landing" as their base case. This optimistic outlook seems at odds with:

• Weakening economic indicators

• Rising unemployment

• Persistent inflation

• Potential commercial real estate defaults

• Global geopolitical tensions

• The weakest U.S. dollar since July 2023

• Crisis-level interest rate cuts

• Wartime-level deficit spending

• Aggressive gold purchases by central banks

Gold as a Crisis Indicator

Gold's performance suggests we are far from a "soft landing":

• On track for its best year since 2010, potentially rivaling 1979's 126% gain

• Trading patterns indicative of crisis conditions

• Reflecting concerns about debt, inflation, and currency stability

Global De-dollarization

The rally in gold also points to broader trends in global finance:

• Countries can now purchase more oil using gold than with U.S. dollars

• Many nations are moving away from dollar-denominated assets

• Potential for increased inflation as dollars return to U.S. shores

BUY GOLD, SILVER and Silver Miners

Gold's dramatic rise in 2024 paints a picture at odds with the Fed's "soft landing" narrative. The confluence of factors driving this rally - from debt concerns to monetary policy shifts and global de-dollarization efforts - suggests that gold is signaling significant economic stress. As history shows, achieving a soft landing is rare, and the current economic indicators align more closely with crisis conditions than a gentle economic slowdown. Investors and policymakers alike should pay close attention to gold's message as we navigate these uncertain economic waters.

end of section

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More talks about Gold, history of monetary transitions and a podcast on the upcoming BRICS ++ Summit in Russia in late October 2024

Silver Academy’s Jon Forrest Little with Kitco’s editor in chief Michelle Makori

As can be expected, whenever Jon enters a room (he inadvertently created some self-inflicted controversy), he backpedals or walks back his paranoia with a heartfelt email to Michelle Makori and Kitco’s owner, Mr. Bart Kitner.

below is an except (the context being):

Michelle Makori was traveling overseas when Jon wrote:

The self-inflicted controversy wasn't this note, but Jon demanded to see a version of the video prior to the broadcast. When he wasn't able to confirm this extra step, he became obsessed with it.

He had convinced himself that Kitco would air a version of the video to make him look stupid intentionally or that he was trying to micromanage their editing department.

Jon hopes that they just “roll their eyes” at his weird request and stated, “in the grand scheme of skirmishes among villagers, this ranks pretty low”

He then continued with, “There are a lot of problems in the world, and this isn’t one of them.”



Citations
https://news.az/news/gold-prices-near-record-high-over-a-possible-us-fed-rate-cut
https://www.jpmorgan.com/insights/global-research/commodities/gold-prices
https://www.goldmansachs.com/insights/articles/gold-prices-forecast-to-climb-to-record-high
https://www.cbsnews.com/news/heres-how-much-the-price-of-gold-has-increased-so-far-in-2024/
https://www.fxempire.com/forecasts/article/gold-xau-price-forecast-record-high-at-2615-is-2700-next-1462582
https://insurancenewsnet.com/oarticle/gold-price-analysis-heading-to-record-new-highs-16-september-2024
https://www.thekobeissiletter.com/analysis/newsletters
https://coinpriceforecast.com/gold