While many might say I’m a skeptic, jaded, or just a bitter old goldbug, the reality is everything we’re seeing in the markets now has happened before.
-Geopolitical instability: Check
-Manipulated financial markets: Check
-A desperate President fighting inflation: Check
That pretty much sums up the US situation nice and neat. But wait, there’s more!
What in the world could this crazy old man who simply observes history and notices the patterns which create more distortions possibly be talking about?
The unique change that the world order witnessed in the middle of 2025 was a geopolitical change, also known as a shift into a multi-polar world on both the economic and political front. Pax Americana died and most of the United States citizenry didn’t even notice it because explaining the historical change can not be completed in a 90 second Tik-Tok dance routine with nurses and cheerleaders dancing in garter belts.
The shifts have not gone unnoticed in the gold market however, and that is reflection of the shifting trade winds and determinate factors in what is now a safe asset for the future versus a trusted paper asset of the past.
Today, gold closed down once again, over $100 from where it started Sunday night and as of this posting trading in the mid $4300 range. The chart, once again, is the tale of the tape:
While this looks like a nightmare to the rookies to the older salts, this looks more like a final opportunity. Forgiveness. A blessing.
To buy one more time before the next leg higher.
The consolidation area that lead to the late 2025 surge up above $5500 is intact and held support at the first retests over the summer of this year. The brief panic rally in August was on extremely thin volume in the juniors and large miners so that should have been a signal to those who pay attention that the rally would fizzle out in parallel with equities.
The excuse that Warsh was going to crush all the hard assets and rescue the economy was just another feint, a threat with no chutzpah, and the reality is that until he deals a crushing blow to equity assets it’s just the FOMC blowing sweet kisses into the ears of the administration.
If the economic and market scenario continues to play out as expected, look for gold and silver to re-enter their consolidation phase with silver testing a lower long term low but gold remaining close to the range outlined above. In the mean time, enjoy the show as the past half decade of MMT and insane perversions of capitalism come back to haunt the posers currently attempting to exploit the American people.
And don’t forget to leave the gun and take the cannoli.
