Gold and the Dollar: A Breakup Story
Gold and the US dollar were once inseparable partners. Now they are sworn rivals. Let's dig into the breakup that shaped the modern economic system.
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Gold Reserves vs. Treasuries: Did Gold Just Become the Global Reserve Currency?
The value of central bank gold reserves just surpassed the value of foreign U.S. Treasury holdings. When the biggest players in the world swap bonds for bullion, it’s worth paying attention.
Gold Still Shines in Stock Mania
Precious metals slow down their climb, but continue to show strength after the Thanksgiving break in the US.
Treasury Yields and Gold Rise in Tandem
Typically, we expect the price of gold to fall when yields rise. But over the last two months, Treasury yields and gold have surged together.
Interest Rates vs. Gold: 3 ways the Fed impacts gold
Gold and interest rates have an inverse relationship. When interest rates fall, the price of gold tends to rise, and vice versa.
Momentum is hot in the metals market
An unexpected slowdown in the CPI caused a sharp drop in the dollar, incentivizing buyers to chase gold and silver.
Gold surges in the face of rising yields
Typically, rising yields are bad for gold. Not this year. Rising yields represent an increasing risk of a public debt crisis, for which gold may be the only remedy.
Investors turn to gold as rate cuts loom
When the Fed cuts interest rates this summer, gold and silver stand to absorb billions of dollars as investors redeploy their mountain of cash.
What Causes the Economy to Crash?
Economic crashes begin with artificially low interest rates and credit expansion which lead to a misallocation of resources, inevitably culminating in a recession.
Gold soars to all-time high, China leads the charge
Gold has risen 6% in less than a week, achieving an all-time high.
What Backs the United States Dollar?
Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government’s ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.
The Truth About Gold Price Manipulation
Gold bugs often debate the scope and impact of gold price manipulation. Some of these accusations are absolutely true, while others enter the realm of conspiracy.
History of the Gold Standard in America
To understand the history of US monetary system, we must grasp the role of its central protagonist: gold.
How Does Quantitative Easing Impact Gold?
The long-term risks of quantitative easing, including eroding the credibility of the US dollar, are closely linked to gold's performance.
Gold vs. Money Supply
History is clear: when the money supply increases, the gold price follows. The more dollars are printed, the more can be stuffed into the earth’s limited supply of gold.