It has been a dark two years for gold investors. As with the crash in 2013, which occurred while the Fed was printing money, it seems bizarre that gold should be going down during high inflation. The gold market is forward looking, however, and has been
telegraphing the collapse in commodity prices, real estate, and equity markets that
has only recently commenced. Yet recent travails in the largest finance markets—the
yen, the pound, large banks like Credit Suisse, and now illiquidity in the U.S. Treasury
market—all suggest we are near the next run in the gold price. The Fed’s decision to spike interest rates has put foreign countries in a quandary:
either increase domestic rates commensurately, accepting the economic and political
consequences, or keep rates low and watch the currency collapse as traders sell it to buy
dollars to capture the higher rates in the U.S.