Gold Fundamental Review

Gold is simple, is goes up in value when paper goes down in value, the force which causes this fact is inflation.


Below we have USCPI YOY% change versus US 5 year interest rate, when the blue line is above the red interest rates are far too low and money is worth less as inflation is destroying it, even more so when the blue line is NOT CONTAINED and is rising (which is very good for gold).

Events change things. Trump policies (tax break, big spending) are events. The very simple fundamental fact is inflation is moving from Wall Street to Main Street, and you can expect main street money to start to move (velocity of M2 see chart below) around which will great more inflation.

Here is the same chart as above, but YOY% change. Breaking ZERO line very inflationary. Watch it!

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