Above is a graph for gold over the past 60-days till yesterday. Today gold is hovering at $1,865- up $32- from yesterday and up $105- from 30 days ago.
Higher PM's typically mean that the market is expecting higher inflation - Domestically & globally. It also can point out that global investors are moving investments from their domestic markets to a solid commodity. Now we all know that investors have been moving investments from the EU to here for half a year now. I suspect a major movement to gold now too.
There is an old economic term called Gresham's Law. This law basically outlines bad fiat money coming into a market forcing out good currency. A great historical example we learned in economics class is when England's, King Henry VIII, replaced silver shilling coins with common metals.
A more modern-day example might be, bitcoin replacing fiat currencies around the globe.
With gold marching to a new ceiling of $1,900-, the second ceiling breakthrough in 30-days, we are experiencing what I will call an
anti-Gresham's Law situation. Where good currency is coming into the market and pushing out bad.
It will be interesting to watch the PM's closely going forward to give a hint as to what is coming down the pike. Anti-Gresham's Law might be used as one indicator to predict,
> War,
> Higher or continued high inflation,
> Stagflation,
> Unemployment increasing, and/or
> Major market correction.
Keep an eye closely on PM's during Q1, 2023.
