- ITM Trading
Slides and Links: https://www.itmtrading.com/blog/gold-…
A major pattern shift happened on November 7th, global interest rates spiked up dramatically. With debt at nosebleed levels and the need to roll over and add to those debt levels, this shift poses significant risk to the already precarious global economy and could indicate that central bankers are losing control even in this “ample reserve” central bank policy regime. Stock markets loved it and climbed to new highs with the fed promise of unlimited new money. The last time we saw this level of injection was 2008, as the financial crisis was unfolding.
Yet magically, main street media is telling us that everything is looking so much better and that justifies higher stock prices even as many of world’s wealthiest investors sit on the side line and prepare for a “major stock sell-off” and the purchasing power of the dollar sinks to new lows. And with no new positive changes, it is now risk off and spot gold and spot silver prices decline. For me it is an opportunity to buy physical gold and silver cheaper, just like many global central banks are doing. Perhaps they recognize the lessons from Venezuela whose stock markets soared 73,000% in 2018. Of course, that was in nominal terms. In valuation terms, because of devaluation, it actually dropped 94%. But gold did what it’s done for 6000 years. It held it’s value and enabled those who hold it outside the fiat financial system, to remain self sufficient and thrive.