When Gold moved from $2,000 to $3,000, a 50% jump in under 4 years
The US Dollar index when gold was $2000 was 93
The US Dollar index when gold blew past $3000 (past few days) was 103
So Gold has risen 50% in environment where US dollar has jumped 10%
When Dollar goes back down around 93 again
which is predicted amid Trump’s strategy to make US goods more competitive on global market
Gold could soar again towards $4,000 quickly
Silver shorts are also in huge trouble as we will report on more closely tomorrow
Central Bankers are the insiders of the Fiat Monetary System
They know something
The Unseen Gold Rush: Central Banks Drive a Silent Bull Market
In recent years, gold has experienced a remarkable ascent, breaking through the $3,000 per ounce barrier for the first time. This surge is not driven by the typical frenzy of retail investors but by a more strategic player: central banks. The silence surrounding this bull market is as intriguing as it is telling, highlighting a shift in global financial dynamics that few are discussing.
Central banks have been aggressively accumulating gold, diversifying their reserves away from the U.S. dollar and positioning themselves for potential economic downturns. This trend is not new but has accelerated, with countries like China, Russia, and India leading the charge. The logic behind this move is multifaceted, driven by geopolitical tensions, economic uncertainties, and the weakening U.S. dollar.
Peter Schiff, a renowned economist and gold advocate, believes that gold's rally is far from over. He notes that while gold first broke the $2,000 barrier in April 2020, the current rise is different. In 2020, there was widespread media coverage and a rush to buy gold, but today, despite gold reaching unprecedented heights, the public remains largely disengaged.
Schiff emphasizes that if investors missed buying gold at $2,000, they haven't really missed the boat because gold is expected to go much higher. However, he suggests that buying silver below $35 is a compelling alternative, as he predicts silver could reach $50 by the fall of 2025. Silver, often referred to as the "poor man's gold," has historically followed gold's lead but remains undervalued compared to gold's meteoric rise. This disconnect presents an opportunity for investors, as silver has not yet caught up with gold's price increase.
Buy Mining Equities (depending on your risk tolerance)
The disconnect between gold prices and mining stocks is another intriguing aspect of this story. Despite gold's significant rise, many mining companies are trading lower than they were when gold was at $2,000 in 2020. This lag is attributed to rising mining costs, which have made the business less attractive. However, as gold prices continue to outpace these costs, the economics of mining are shifting, making mining stocks an overlooked opportunity for investors.
The current gold bull market is a story of strategic investment rather than speculative frenzy.
Central banks are driving this trend, positioning themselves for a future where gold may play a more central role in the global financial system. As investors begin to take notice, it will be interesting to see how this silent gold rush evolves. For now, the lack of attention from retail investors and the media only underscores the potential for further growth in the precious metals market. Whether you're a seasoned investor or just starting to explore the world of gold and silver, this is a story worth watching closely.