Sadly, there were signs.
This story from tonight’s New York Post was a siren screaming into the night:
Gold shining ‘bright like a diamond,’ could reach $3K per ounce, Citi says
Then there was this story from Yahoo News:
Costco Reportedly Sells $200 Million in Gold Bars Monthly
Not a big deal. We saw stories about coin shops selling out of gold and silver plus the usual speculative frenzy in the late 1970s.
This story perhaps?
Gold Prices at a Record High Are Keeping Pawn Shops Busy
The story above from Bloomberg does not indicate that gold is popular, no, it reinforces that gold is the stable of value in bad times that it always has been. Are people rushing to pawn shops to sell furniture, picture frames, or bitcoin?
No.
They are selling their scrap, and if they have it, their solid gold coins and bars.
Thus why I warn my fellow goldbugs, when the media starts squealing, the situation is changing for the short term. Remember this article from these pages back in February? Well, this chart of gold prices for the past year is hardly reassuring:
While that move might look massive, a short term correction towards the 2200 to 2300 range would not be out of character, especially the way America’s unstable central bankers are behaving. However, all bets are off if a full blown war develops in the Middle East.
To get a better picture, this longer term five year chart provides the perspective one might need to understand how this era might be more similar to 1978-79 than the bust that happened in the 1980s.
With all of the media fervor, including on all of the Bubblevisions about gold and gold miners, a correction is probably in order. To see gold suddenly crater after this rise back to the 2200ish neighborhood would be healthy and probably necessary.
Once everyone sobers up and realize that once again Janet Yellen and Jay Powell were lying and will actually inflate or die, then the high in gold is only determined by the demand for the true flight to safety.
And financial survival.
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