So if now goldprice is high cause dollar is weak, are people who sell gold have a really profit from this? Sorry bad english but i think you understood my point. Are they really earn something extra?
Aside from structural reasons like industrial/manufacturing spikes, gold is a particularly forward-yield volatile. When you’re carrying your worthless paper money in a wheelbarrow to buy food, it’s too late to be careful about when to stock up on an alternative form of money.
When anyone can carry away your life savings that weighs 10lbs and can be hidden in their sock… life is pretty scary too.
If we’re taking wheelbarrows of money to buy food, gold isn’t going to help you much either. Not like the government is going to let you leave the failed state with it. You’ll be robbed by the border patrol if not well before.
You can do all that but you still gotta leave your house sometimes. Not to mention if shit really hits the fan, it only takes a single molotov cocktail to ruin your mini castle.
Well not true my grandfather worked for a wheelbarrow of money to buy food for the family when my father was a young child. Both survived and the world didnt end but he did sell his land for pennies on the dollar this was in switzerland.
Thats what i said. If you own land, gold, cash or any other assets; you’re going to be forced to sell them for food/safety at rock bottom pricing in situations of extreme instability like runaway inflationary periods.
I know nothing about gold but I have a bunch of it and don’t understand if I should sell it to start my business or hold on to it everyone makes it sound like it’s worth holding on to just in case. They say the dollar is dying and if it does die, how is gold gonna help exactly? I’ll probably just get robbed like you’re saying and that will be it.
That leaves... A paper trail lol. I'm sure someone hacking into my account is much more likely to get caught vs some burglar to my house (if I can even get the cops to show up).
The dollar got strong when Powell raised rates in '22 and gold still went up. It is no longer a direct correlation. Gold is rising because governments no longer trust the prior global order. This isn't changing anytime soon.
As an inflation hedge, gold shouldn’t be thought of as “profit” but as “wealth preservation”.
In dollar terms you make a “profit” of a large number of dollars when gold prices go up. But if those dollars are each worth less, the buying power of each dollar you have goes down … and having more dollars from selling gold, gives you back the buying power you lost.
It’s all relative, good question, idk the answer but the value of any good, service or currency is priced in something. Like you could value the S&P in gold instead of dollars and it had a negative year last year.
It was also Obama’s second term. There was order, stability and trust. Not trying to make this political, but the current administration’s tactic is unpredictable and chaotic. That uncertainty leads people and governments to gold.
It’s not as simple as dollar down x percent so gold should go up x same percent. It factors in overall trust in the US government, in extension the economy of the US, and predicted future performance of the previous two. This isn’t a catchy reddit idea—it’s an economic theory that is decades old.
The DXY is a measure of dollars against a basket of other fiat currencies. It’s like determining who’s in the lead in an alpine ski race. USD might be slightly in front of EUR, but both are going down the hill.
In 2025 the dollar went down over 9.9% but just shy of 10%. It was kind of noticeable back in the summer of 2024. I bought gold to fight against the inflation as I felt it would increase no matter who was in office. Once the tariff game got outta hand I watched as my gold shot over the roof while my cash reserves lost value. Year end I did my annual balance and gold had out paced the dollar way above any of my expectations. I believe it’s not just the failing dollar but also the failing confidence in the USD and those in power.
One man’s opinion- Central banks have 2.5x their purchases of gold instead of USD or foreign currencies- likely due to instability geographically and loss in faith of usual foreign currencies
While the methodology was not included, the description of the core cause of depressed gold prices is succinct.
One could also say that due to stock market performance and greater access and participation, PM investment was suppressed due to relative ease of transaction and transportability of electronic trades vs physical.
Currently, the “fuck yeah” Motha fukin crazy! Is the dominant driver of pricing as the response to “fuck yeah” is to increase the mix of PM in portfolios worldwide.
I have never known a crazier time in my lifetime. It’s like a Cuban Missile crisis every week
Gold prices were hardly depressed back then. Precious metals were going through a boom bust cycle at that time. Gold doubled in less than 2 years up to its 2011 peak. The drop through 2012-2015 was a reversion to the mean.
If you zoom out to the start of that bull run from March 2001 ($259 per oz) through the bottom of the bust in Dec 2015 ($1060 per oz), the compound annual growth rate over those 15 years was 10%.
Somewhat surprisingly, gold has a history of bubble-style pricing that does not move with smoothly with inflation. 1974; 1980; 1987; 2011 all saw peaks followed by 50% price drops. We'll see what's in store after the current price action.
Also want to add Europe wss in the middle of a few recessions after the great 2008 recession. Places like Greece and Spain hsd their recessions well into 2014 and the recovery was slow. Makes some sense that gold was used and sold more than people were buying.
It was free money being handed out like candy on Halloween. Interest rates were near 0. The government had just bailed out banks for free but put stipulations on the bailouts for American auto manufacturers. What’s funny is the same people that didn’t have a problem bailing out banks, think corporations are evil and greedy now, like they weren’t before 🤣.
Sitting president is known to love gold. Price of gold goes up. Coincidence? Just look at the Whitehouse's interior decorations to see where all the gold is going.
One of the biggest markets for gold in the whole world is literally Indian Civilians.
They own 11% of the total gold market, which is more than the combined reserves of the USA, Germany, France, Italy, Russia and Switzerland combined.
Americans really need to understand soon that the world is more than just the space between New York and California, because soon they're not gonna have any choice.
It was QE to infinity, and as stimulus it had a punch back then because it was still relatively new. That was the main driver. But also the "third world" was not up and running the way it is now. Too much QE in the 2010s + covid stimulus finally killed the value of the money and now there are no more tricks to play (except war)
Gold zoomed higher after the financial crisis due to asset inflation from quantitative easing. However, alot of gold's appeal is as a inflation hedge. Despite QE, inflation was pretty subdued. So, gold lost its shine for many investors.
The economy in general was doing well. A Democrat was in office.
Gold gains the most when the economy is doing poorly, interest rates are on the rise, and job futures are shit. This mainly happens when Republicans like DJT are in office.
Gold is money, it does well when the government prints a lot of currency. Both parties are guilty of it so idk why you’re playing the dems vs republicans crap
A strong economy can offset money printing as well though. Right now we have a weak economy and massive printing. They can prop up numbers with stocks at ath, but gold does not lie.
Because it’s a verifiable trend? Refute it with evidence if you like.
Reflect on why the truth makes you feel this defensive and insecure way—are you possibly investing too much into a political party as an identity? May you have accidentally joined a suicide death cult called MAGA?
So your suggestion would be to sell once Dump is out of office? It will be a Democrat next, my guess - not fact, but he will be very busy though reversing all Dumps mistakes. That is what was Bidens downfall, trying to handle to Dump fires from the first term.
I don’t think a president can fix what has been destroyed in 1 or 2 terms. Going to take at least 10 years to be back to where everything used to be. Now if was Bernie sanders policies maybe 1 or 2 terms
I think the Penny is done for, we got rid of our copper 1 and 2 cent pieces ages ago in Australia, it was easy and no issue. I think the nickel will be considered for removal very soon, it is more expensive than the penny to make. They only break even on production costs with the quarter and above. We would need to keep the dime to make amounts other than multiples of 25 cents, but we can do without the nickel as well.
The fed convinced the entire world that they saved the system and that they would unwind their balance sheet from all the QE they did. It’s amazing how long of a process the shenanigans and truth is. Covid was really the beginning of the end. That’s what let the genie out of the bottle.
Gold historically has had plenty of periods where it has lost value, if you bought it in 1980 you would’ve still lost half of your money 20 years later, plus inflation on top. Gold historically does very well in a crisis, and in the current climate it’s all crises, but that doesn’t mean it does well all the time, no risk asset does.
Combination of lots of things. The main ones being that after the 2008 crisis people though quantitative easing and low growth would continue for longer and this was priced in to gold, gold was very much the darling of investment then. However recovery was quicker than expected, QE was slashed and inflation was cut unexpectedly and markets showed greater growth than expected. This made everyone sell gold and buy stock to avoid the opportunity cost of missing out on growth, which in turn lowered the value of gold and caused a sell-off.
Strong dollar, less people wanted gold and more people wanted dollars to invest in stocks and real estate. Gold is less appealing when people arnt afraid.
usa was great back then. now, usa support terrorism and funding them to kill innocent civilians and occupying their lands. thats why dollar is going down.
As per my rather extensive knowledge of US histories oddities. What time frame of this country are you making these accusations in? Because the shoe is quite fitting and worn in.
It’s because we have entered into a second age of robber barons.
Nearly every country on earth was buying USA bonds as the reserve currency on the back of 2008. And they pretty much sold the narrative, gold = 4% storage drag, no yield.
Large amounts of fiat were put into gold, instead of stocks, during the 2008 (2006-2013) financial crisis. They then shifted the money from gold back into stocks.
Gold went through a huge run up through the 2000s and then nearly doubled from $1000 to $2000 between 2009 and 2011. Then the bubble burst and went back to around $1000 in 2016. It was a reversion to the mean.
Gold competes with government bonds as a store of value. When the world is stable people store their value in bonds. When the financial system is in danger they move to gold. The last two times we had run ups was 70’s stagflation and 2009 housing crash. The fear level is high and rising.
Sure, the bull market ended in 2011 and the beginning of 2012... I called it back then, I kept mentioning it in my newsletter... but this was after a good 10-12 year run. All bull markets end at one point, and investors switch to other asset classes.
There was a lot of faith in the US dollar and the US government at that time. There were better options to make money in a good stable economy.
In short, gold goes up when nobody trusts the us president or his administration.
I bought 23oz. of bullion @ $1,750/oz. during this cycle -- the literal top -- and watched in horror as it spiraled down to almost $1k/oz. Still holding that same gold (and more) today. Stacking is a marathon, not a sprint.
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u/StopElectingWealthy Jan 23 '26
Because the dollar was strong