Veteran analyst Clem Chambers says US inflation pressure of over 7% and the Ukraine crisis are needed to keep gold alive, a sign of just how badly the markets are. “Some people are trying to explain the stagnant gold trade as a result of younger generations being uninterested in gold as a precious metal,” the analyst says, apparently saying the joke is that gold is viewed as a “Boomer Bitcoin.” Clem Chambers’ analysis in his own words cryptocoin.com We have prepared for our readers.
“If the crisis in Ukraine escalates, gold will be vertical”
Gold hyps are opposing the idea of “first slowly, then all at once” as an incentive to FOMO (Fear of Missing Out) before gold becomes another missed boat. It will go a long way if the gold boat sails, because the fundamentals are that inflation (everyone has to admit it’s here now) won’t go away for a long time.
If the crisis in Ukraine escalates, gold will go vertical. There will be many factors behind this vertical, but the biggest one will be a kick to the global economy, which is far from recovery if not down and out. The displacement from a major European crisis will create further disruption on the supply side, causing inflation with another dose of fiscal incontinence (expansion) to double-dose inflation on top of what has already been baked.
According to the analyst, the real question is: What can stop gold?
When you look at the history of inflation in the last year or two, the root cause is usually war. When countries break the bank (meaning printing money) due to carnage, the result is currency depreciation. Even the once mighty British had to halve the silver content of their coins after the First World War, and it’s not surprising that silver disappeared altogether in 1947 when a bankrupt state had to print coins to save itself from post-war bankruptcy.
While many gold bulls are confused as to why gold isn’t going to $3,000, the real question is, what can stop it? The tightening of the Federal Reserve must have been priced in. So all that remains are open questions of the European conflict and open questions about how long inflation will last. The second answer is that inflation will be hotter for a long time. I believe in time. So how should the projection be?
It’s not nice to think in terms of a major European conflict, but if a conflict escalates the impact on everything, including gold, will be enormous.
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