Yesterday gold made a monthly closing high. Today 12/1/2023 gold made a weekly closing high. It has yet to make an all time daily closing high. But the fact that nobody in the United States of America is making a big deal of this gold move is awesome.
To be sure, a lot is going on.
A) An election is ramping up that might well change the course of democracy. Argentina and Holland have recently elected anti-democracy plutocrat populists (Yes - it sounds absurd but we may do the same.)
B) Two hot wars with Western proxies vs Russia and Iran (and their proxies) could well presage world war III.
C) Though government statistics indicate inflation is dropping and extremely wealthy analysts are worried about deflation - everything from Housing to Education to Healthcare to Food is still so expensive that 62 percent of Americans would become homeless and starve is they miss a single paycheck. If you don't believe that, it shows you're part of the lucky 38 percent.
So, sure, why notice a gold market that is beginning a massive breakout?
After all this is the fifth try to break out over $2100.
BUT - this time gold is breaking out in advance of the next recession that many still don't see coming and in advance of the most massive dollar denominated debt refinancing in the history of the world. Hundreds of billions of dollars of corporate debt around the globe and trillions of government debt originally issued to around ZERO PERCENT will have to be refinanced at much higher levels in 2024 and 2025.
There isn't anyone from Drukenmiller to Zulauf to Paul Tudor Jones to Ted Oakley, to Lacy Hunt to James Grant to Marc Faber to Jim Rogers to Ray Dalio etc etc who don't see this refinancing causing massive cracks in the global economy. Cracks that can only be filled by extreme Central Bank Injections of Liquidity. So extreme that nobody has any idea what the result will be.
Except everybody understands this will vastly weaken the purchasing power of the world's currencies with respect to real hard assets.
So maybe it's time to notice the gold breakout.