Gold does best in stagflationary periods and…
Tom welcomes back Nick Barisheff. He points out that poking Russia was a bad idea and now we have to live with the results of the sanctions. Russia now wants Rubles or gold in exchange for all their commodity exports. This was an obvious retaliation.
Gold does best in stagflationary periods and we’re starting to see it now. Stocks, bonds, and real estate are all in historic bubbles and grossly overvalued. We’re well past due for a major correction and such a correction will only aggravate the problems. The Fed is cornered and has no viable way out.
Gold and silver are highly manipulated so that throws off-price discovery. Central banks lease their gold and may have leased much of it to China and Russia while still counting it on their books. Russia and China have some official gold but many estimate they have much more in their sovereign wealth funds. Those funds don’t report their holdings.