OK, so lets see here. Hyperinflationists will argue they are right and that runaway inflation is just around the corner? You now my thoughts, why is gold running now? In my opinion, this time is different and the need to forcibly sell assets and delever is not anywhere as strong as it was the last 2 times gold tried to make new highs. That lack of forced selling to raise $$$ may not constrain gold... [more]
OK, so lets see here. Hyperinflationists will argue they are right and that runaway inflation is just around the corner?
You now my thoughts, why is gold running now? In my opinion, this time is different and the need to forcibly sell assets and delever is not anywhere as strong as it was the last 2 times gold tried to make new highs. That lack of forced selling to raise $$$ may not constrain gold this time around and if it technically breaks out, all sorts of trading dynamics kick in that make fundamentals secondary to momentum forces. Similar to how oil surged 45% from 100 to 145 in mid 2008 in a very short time. Can you imagine if gold does similar move? If it does, people will start saying that gold is telling us inflation is a big problem and the fed must start to raise rates. Watch!
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