RE: Gold top?25 Feb 2025 11:36
Morning 400,
Will watch it in a bit, but my first thoughts (for what they’re worth) are:
Disinflation won’t solve the underlying problem of unmanageable government debt, as inflation is used as a tool by governments/CB’s to reduce the debt in real terms, regardless of what they tell the taxpayer. So with disinflation they are limiting their options to deal with it, and will need to figure something else out. It won’t be long before total tax take will be spent of servicing debt repayments.
The Banks and investors losing faith in fiat is the main driver in the increase of gold as far as I can see, coupled with other factors too of course.
If gold was revalued on the books, it could be a huge driver for the gold price going forward, without it, sentiment will still remain strong as far as I can see for the reason above.
If the gold isn’t in Fort Knox, I’d expect the price to go bonkers...but I find that an unlikely scenario.
There may very well be a pull back (I have nothing to base that on other than a near vertical long term chart) but I think the overall case for gold will continue internationally, led by the US, or otherwise.
I’m hoping for a drop to buy more!
I’m no expert however, so would defer to people like Speedy for his opinion. 👍