Gold: The Anti-Fiat Bubble

Gold is an anti-bubble investment option, even though it’s been frustrating for many investors recently… Diego Parrilla on Palisades Gold Radio Diego believes the Fed hiking cycle is approaching its peak as we enter next year. There are limits to how high they can go, and the rate of hiking cycles has placed a lot of pressure on markets. The dollar has been putting pressure on other countries. There are pockets of weakness in the system, and it’s difficult to know what might burst first. How rapidly the Fed will pivot will depend on how markets react and the credit markets. Currency markets will also be a concern and there is excess hidden leverage in the system. Hopefully, central banks will learn the risks of zero and negative interest rates. The result is gross mis-allocations within the economic system. Everything revolves around inflation and as we enter the next phase of markets, there is a perception that we will print less. Diego believes the inevitable result will be even more money printing. Eventually, the only way to sustain the system will be to grant central banks yield curve control. To prevent bubbles from imploding they will need to print more and that will result in further inflation. We’re just delaying, transferring, transforming, and enlarging the problems. The energy situation in Europe is very interesting because it shows the problems that have built up. There is a reliance on Russia and a lack of capital investment. Governments want energy security, but the problems can be exacerbated by hoarding. Energy subsidies will only increase the problems of production capacity. He explains why he likes gold and feels that it is an anti-bubble investment option, even though it’s been frustrating for many investors recently. He cautions that now is not the time to be using leverage and discusses how best to position one’s portfolio. FULL SHOW NOTES AND LINKS HERE [embedded content]