Central banks are actively acquiring gold as a hedge against economic uncertainty, driving up prices and influencing market dynamics.
The commodity research Bureau (CRB) index shows commodity prices have risen by 18% over the last year, with a lag of only a few months before affecting consumer prices.
Monthly inflation rates have been steadily increasing since July 2024, rising from 0.2% to 0.5% in January, indicating an upward trend in inflation.
Unusual patterns in the gold futures market show significantly higher delivery notices, suggesting people are taking physical possession of gold rather than rolling contracts.
The Bank of England and LBMA face a 4-8 week backlog for gold bar deliveries to New York, forcing short sellers to buy back contracts and roll them to future dates.
Gold mining stocks are significantly underperforming compared to gold prices, with GDX and GDXJ ETFs still negative despite gold prices nearly tripling since 2008.
Gold miners’ hedging strategies (typically 50% of portfolio) will result in profits increasing by over 100% this year and next due to higher gold prices.
Gold mining stocks are relatively cheap with a P/E ratio around 7, expected to drop to 4 based on rising gold prices, presenting a potential investment opportunity.
Gold’s value could skyrocket due to its role as real money, potentially being pegged to currencies again during the next crisis.
The current stock market bubble is one of the largest in US history, with its burst likely to drive massive money flow into gold, silver, and miners.
Gold miners are severely underpriced, with the XU index potentially tripling in value just to reach historical bottom levels.
Silver’s price could go “berserk” to reach normal levels, with a 2-3% ratio to gold considered achievable and potentially “off the page”.
The bubble breaking in the stock market will drive monetary degradation, which is the ultimate driver of gold prices.
Money flow into gold, silver, and miners is expected to be “violent and vertical”, contrasting with the usual “3 steps up, 2 back” pattern.
Modern poverty in the US and UK includes access to color TVs, microwaves, and vehicles, challenging traditional notions of deprivation.
The welfare state enables a counterproductive lifestyle, evidenced by rioters in designer clothing stealing luxury items rather than necessities.
Multiculturalism can limit opportunities by discouraging the learning of Western European languages crucial for advancement in science, math, and medicine.
Affirmative action has proven problematic in multiple countries, including the US, India, and Sri Lanka, with similar patterns of social and economic issues.
Identity merchants emerge when emerging intelligentsia from poorer groups focus on softer subjects like racial issues and cultural expression, rather than STEM fields.
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