Written by Bryan Lutz, editor at dollarcollapse.com:
“When Gold argues the cause, eloquence is impotent.”
— Publilius Syrus
This thanksgiving gold investors everywhere have much to be thankful for. Given some will have been distracted by cynicism of price resistance over the last three plus years.
If you are one of those people, the antidote to cynicism is not far from the current holiday – Thanksgiving.
For all the pizazz, movements in gold prices provide for the current investor, it is nothing compared to the weight of gold arguing its own cause.
John Rubino recently wrote an article on his Substack pointing out that as humans, we like big round numbers, and those numbers psychologically pinpoint an easy mark for traders to buy, sell, and negotiate the true market value of gold.
Not only is that accurate psychological insight, if you were to look at those resistance points in relation to the US dollar (DXY), you can see how gold also provides peace of mind.
He also pointed out that since gold is now “triple topping” at $2000 / oz, a breakthrough is not at all far away… until the next big number.
So there’s a bit of tension there.
If you are anxiously waiting for a breakthrough in pricing, yes, it is most likely coming soon.
But these resistance points, particularly those from 2013 to 2019 below $1400 / oz and now, $2000 / oz from 2020 till today should enhance your faith that gold is doing what it’s supposed to be doing.
Gold is level ground in a world full of fiat fluff.
As more dollars are printed, quantitative easing engaged, and currency wars won across the globe, gold simply holds it’s own like a rule of law…
Then, when the value of the dollar drops more dollars are required to buy up unwanted financial assets and maintain dominance in the currency war.
The only thing that’s different now, is the sheer amount of US federal debt. It’s unsustainable, the cost to service that debt is the like the opposite of quantitative easing. You can’t just buy debt up by printing more money in a fiat system…
The cost to service that debt compounds and you’re left with a skyrocketing interest payments, which only increases the inflationary environment for the average joe.
So I’m grateful for the price resistance.
- Gold can create stability for more predictable markets.
- Gold as a sufficient and credible store of value.
- A balance between gold’s value and inflationary pressures means gold is an inflation hedge. And will continue to remain a hedge in the future.
And, if you own gold, that’s three reasons to rest easy this Thanksgiving Weekend.
Yes, price resistance may tell anxious traders when to buy and sell, but to quote Charlie Munger once more…
“The big money is not in the buying and selling but in the waiting.”
When you wait, gold will argue its own cause. Fed Fund Rates are bound to come down soon. Most people anticipate Spring 2024…
Right now those rates are the only thing holding gold back.
But as it is, your protection is there and in time, your profit will come too.