Central Banks Snapping Up Gold

| February 14, 2019
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Central banks have bought the most gold since the end of the second world war with the commodity becoming an increasingly valuable hedge against growing global instability.

This was the recent headline on BusinessInsider.

I would make the correction that Gold is a hedge against a central bank mistake.

Gold is seen to have returns similar to equities in the current cycle, which is both GDP and Inflation slowing on a year-over-year basis.

However, do not expect this to happen in a straight line.

For example, the European economy is teetering on wide-spread recession. This will force the Eurpean Central Bank to continue a dovish, easing stance. Which will in turn weaken the Euro vs. the US Dollar. Thus Gold will have periods of weakness.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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