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3 Sunday Morning Thoughts – March 8 Edition

Written by Bryan Lutz, Editor at Dollarcollapse.com:

 

So, every Sunday morning I sit down to write a few short thoughts.

Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues affecting the markets, or the economy.

Here are three thoughts for this morning:

 

1.War has a way of clarifying things.

 

The dollar has been holding above the 200-day moving average by the largest margin in a year.

War bids do that.

 

But don’t mistake a fear trade for strength.

The dollar isn’t rising because the system is healthy. It’s rising because every other fiat currency looks worse around the globe, and you always bet on the guys with the biggest guns.

In other war news, oil just spiked 31%. Mostly because of the Straight of Hormuz is blocked creating a short-term supply shock.

 

 

The dollar and oil are two fear trades running simultaneously. Both won’t be right for long.

We’ll have to wait and see which one the market abandons first.

My bets on oil once the straight clears up, while the dollar has to wait for the $1 Billion per day bill to hit the federal balance sheet.

 

2. Schiff knew about Bitcoin earlier than most people. For his sake, I hope he’s right. I hate to see anyone miss out. But in the end, his gold will always be there.

 

Schiff has been the loudest anti-Bitcoin voice for years, but over a decade ago it was a different story.

Schiff was likening Bitcoin to gold.

It seems he was pretty earlier on the topic compared to most people, even seeing some benefit to the idea of a “digital gold.”

 

 

In 2013, Bitcoin went from about $24 a coin up to $227 per coin.

Then down to $86 per coin.

Then up to around $1186.

If Schiff is wrong about Bitcoin, he’s going to suffer the schadenfreude of a century.

More than that, he will have missed out, and that really sucks.

Maybe it won’t matter for him in the end though. Gold will always be there.

 

3. Volatility in Gold ETFs is expected. Gold’s been on its way up for a few years now.

 

This week we saw some massive outflows in one of the major gold ETFs. It was the largest outflow in more than a decade.

Again, as gold gets closer to revaluation we seeing more volatility.

And that volatility is coming from retail investors and bankers are taking profits on gold.

 

 

For the past two years, we’ve mostly seen positive inflows for gold ETFs.

Nothing to be scared about here. Just more profit taking.

 

 

I’m sure there are investment managers out there waiting to move money in tomorrow morning.

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