Just like the Bill Murray movie Groundhog Day… Well we are below $1,800… again…. It is a disappointment to say the least to see the precious metal getting whipsawed back and forth, and the worst part is there really isn’t a good explanation for it. Inflation is heating up hotter and hotter which would rationally make an investor gain confidence in the safe haven. Yet it seems like investors are more interested in the FED chair Powell who has quenched fears by opening his mouth and spouting platitudes divorced from action. What we have is not a free market if the words of a single individual can control the direction of an asset. We simply have a game of betting on what the FED chair is gonna say next.
We have no doubt that the FED has the ability to stop inflation, but we find ourselves in a Chinese finger trap (no pun intended). The only way to realistically combat inflation is through raising interest rates… But our debt is significant enough at this point where if we do raise interest rates we won’t be able to pay the minimum on our debt! We are damned if we do and damned if we don’t. Personally we are extremely bullish long term on Gold, and Bitcoin. What we can’t predict is the irrationality of short term investors and the volatility that is assured to come in the next few months in the market.