Originally posted on John Rubino’s Substack:
Gold blew through $2400/oz this morning:
And the world’s central banks continue to add gold to their monetary reserves. Note that the real action coincided with the outbreak of the Ukraine war, when the US started slapping sanctions on everyone in sight. De-dollarization is a trend with legs.
A case can be made that China alone is driving the current gold bull market. Note how the metal’s price tracks the increase in People’s Bank of China gold reserves.
Silver just pierced its 5-year resistance. If it holds above $30/oz, $35 becomes the next big test.
One of the problems with gold miner stocks has been the fact that mining costs are rising, which offsets some of the benefits of a higher gold price. But that’s changing, as gold rises faster than mining costs, widening miners’ margins and lighting a fire under their stocks. See Finally, Some Good-Looking Gold/Silver Miner Charts.
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One thought on "John Rubino: Why The Gold Rush Is Just Beginning, In Six Charts"
US politics have become toxic with the GOP embracing fascist authoritarian ideologies. US dollar hegemony depends on the strength of the American democracy and its democratic institutions. Republican wins in state, local and Republican Congressional races this November should weaken the dollar. Combined with A Trump win dollar weakness could end in a run on the dollar.