Watching The Gold Market: Not Calling For Hyperinflation
(Edited)
The gold market has a terrific correlation to inflation. This is one of the metrics people watch when trying to determine the inflation situation. With a historical correlation of over 98%, this is a great barometer.
In this video I discuss what the gold market is doing and how it is reading the situation that we are presently in.
▶️ 3Speak
0
0
0.000
Congratulations @taskmaster4450le! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 13000 comments.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out the last post from @hivebuzz:
View or trade
BEER.Hey @taskmaster4450le, here is a little bit of
BEERfrom @pixresteemer for you. Enjoy it!Learn how to earn FREE BEER each day by staking your
BEER.I watched a lot of Gold Rush on the Discovery channel when I was younger ( and still do from time to time) so I'll always have a soft spot for gold
I preferred Bering Sea Gold, the summer edition. Wasn't a fan of the ice mining.
Parker really grew up. Multi-millionaire by the time he was 20 though.
Posted Using LeoFinance Beta
Yea, Parker has really made it and in a very challenging industry. You might like Gold Rush: white water, they also dive but in Alaska's rivers, they are my favorites at the moment
Posted Using LeoFinance Beta
The gold market is close to becoming more volatile like Bitcoin and this is what traders are looking for in the short term.
But over time, Bitcoin definitely overcome it.
Posted Using LeoFinance Beta
I personally think gold is undervalued due to the manipulation but the chart unfortunately does not lie. There just isn't enough support available if things go bad so I will probably set up my buy orders for the mining companies at specific levels. I have confidence it will go up together with BTC and other cryptos.
Posted Using LeoFinance Beta
If nothing else there is likely going to be a commodity run, starting at some point next year. It is part of the bigger cycles and with the supply shortages, it could really set up for a nice run into 2024-2025.
I would expect gold to be right there benefitting.
Posted Using LeoFinance Beta
Yes I am going to stock up on gold mining companies because they will do good regardless. I don't want the ETFs because I don't know if they have the gold. As the price drops, my average should drop but I'll be adding slowly as it dips because we don't know how far it will drop down to.
Posted Using LeoFinance Beta
the gold market might have its own challenges which is facing,but as a commodity trader i think that gold market is still going to remain my favourite commodity to trade...but cryptocurrencies have made me fall in love with the blockchain world and i am now more interested in trading cryptos...
Posted Using LeoFinance Beta
Summary:
In this video, Task discusses the current situation of gold as an investment. He reflects on the correlation between gold and inflation, noting its traditional role during times of economic uncertainty. Task highlights how the market for gold reacted to events such as the repo crisis and the onset of the COVID-19 pandemic, emphasizing its role as a barometer for financial stability. He goes on to express his skepticism towards theories of hyperinflation caused by excessive money printing and predicts a further decline in gold prices due to global economic challenges, automation, and technological advancements affecting traditional inflationary patterns.
Detailed Article:
In the video, Task delves into the fluctuating value of gold, which saw a peak at around $2200 before dipping below $1800. He attributes gold's performance to its historical correlation with inflation, highlighting its role as a safe haven asset during periods of uncertainty. Task traces the rise in gold prices back to the repo crisis in late 2019, followed by the onset of the COVID-19 pandemic, which triggered a rush to cash across various markets.
Task delves into the discrepancy between expectations of hyperinflation due to extensive money printing and the subdued reaction of the gold market. He points out that gold prices are not reflecting hyperinflation fears, suggesting that the inflation argument, driven by money printing, has been disproven over the past 40 years. Task argues that the current economic landscape, characterized by significant job losses and technological advancements, does not align with scenarios like those experienced in the 1970s that witnessed high inflation.
Moreover, Task elaborates on how changes in energy consumption patterns, technology, and the nature of work, as evidenced by the shift towards remote work, are reshaping the economy. He emphasizes that technological advancements can facilitate the deflation of prices even in the face of inflationary pressures. Task challenges the notion of hyperinflation in a technologically advanced era, citing the potential of technology to counteract inflationary trends significantly.
In conclusion, Task's analysis of the gold market serves as a reflection on broader economic trends and challenges prevalent in the current global landscape. He highlights the importance of understanding the evolving economic environment and technological advancements in shaping future financial outcomes.