Before we begin, let me confess first. I was wrong on gold and silver rally.
I called top on gold around 130k & it extended till 165k… Silver at 160k and it’s at 400k today.
Never in my dream I’d have imagined these metals will run these fast and up in just 2 months.
As always, market keeps making me humble.
Now coming to the point, in hindsight, gold and silver are on steroids because of multiple things.
1. US Debt is on the verge of exploding. A topic I’ve been discussing since Covid, non stop printing of currency out of thin air.
2. Non stop printing of currency leads trust issues. It devalues your currency.
3. $ got devalued massively. Dedollarisation picked steam.
4. Central bankers started switching from $, selling US treasuries worth billions and trillions and bought tons of gold.
5. Also the dictator behavior of US by imposing tariffs left, right and centre, kidnapping Venezuelan president fueled this rally. Threats to capture Greenland, making Canada 51st state of US, toppling Iran leadership only furthered the bullish case for safe haven gold.
6. At each upper levels, traders opened short positions out of disbelief and their shorts got squeezed making them lose their pants and pushing gold and silver prices up.
7. Retail caught FOMO and entered gold and silver, thereby further pushing the prices up.
Right now, gold and silver sit at levels nobody in their right minds would have imagined in 2025.
But it is what it is.
We live in a highly unpredictable world. Unpredictable things are bound to happen.
But the bad thing (or good, depending on which lens you see it from) is, does this indicate change in world order right in front of our eyes?
Is the end of US domination here?
Gold rising at such pace is usually not a good indication, historically. Will US easily let go of its global domination? Does this leads to WW3?
These are the questions only time will answer…
