(Kitco News) A lot has happened in the gold space this week. And the tides may finally be turning for the precious metals. Here’s a breakdown of the top three stories.
3. The Federal Reserve kept its monetary policy unchanged but revised up its economic and inflation expectations. The Fed now sees U.S. GDP at 6.5% and inflation at 2.4% in 2021. In response, gold finally rose as the Fed signaled that it plans to keep rates near zero through 2023. Fed Chair continued to refer to any price spikes as transitory while ignoring rising yields. As all of this was being digested, gold breached above $1,750 an ounce — almost a 3-week high.
2. Mark Mobius, founder of Mobius Capital Partners, said that investors have to be in precious metals, citing everything from gold to silver, platinum, and palladium. He described the precious metals as the best “long, long term investment simply because they represent a form of currency.”
1. Ray Dalio, founder of Bridgewater Associates, warned investors that high levels of debt in the U.S. could trigger “shocking” tax changes that might involve prohibitions against assets like gold and bitcoin. Dalio gave examples from the 1930s and 40s when the Fed was able to control yields because gold was banned in the U.S. Dalio once again said that cash is “trash” and told investors to buy “any stuff that will equal inflation or better.”