Gold is getting walloped right now.
A) it is technically severely overbought. But OverBought things can stay overbought for long periods.
B) This is the weakest seasonal period. But sometimes gold can move up during weak seasonal periods.
So why now?
Invidia earnings. The new fantasy is AI. Everybody in the West is High on AI. No need for Gold because AI will transform Western Industry and Productivity and gernerate a new financial golden age.
They're not buying this in the East, where Gold is still at the heart of investing strategies. China, India, the Middle East and Japan. They account for about 75 percent of all physical gold purchases.
Of course the Asians are just not as sophisticated techincally as us Westrners, right?
Just walk through the Campus of MIT or Cal Tech and you'll see nothing but Asian students. So how come they're being so thick about AI? (Even though they're the ones developing it)
Well, what can AI do?
It can collate. It's amazing at collating. Huge data bases are collated in seconds!!!!!!!!
And image recognition. It's great at that. Which is great for deep fakes that confuse political enomies. So if you're a terrorist it's super. If not, it's not so useful. Except fot maybe better graphics for games.
So how does this collation translate into real applications?
So far, it doesn't. Because it sucks at thinking. Thinking involves providing CONTEXT to all those collated factoids.
Context is incredibly complicated. But without it all those factoids are meaningless.
If you study Ancient Greek, you finds quickly that you can translate a long sentence in two completely different ways, with two completely unrelated meanings. And both are gramatically correct - with verb and noun endings that correspond perfectly. How do you know which meaning is correct?
CONTEXT. In fact entire texts can have different meanings if you get the context wrong.
The same with THINKING in general. It's all about providing well conceived context.
But we humans don't even undestand how the brain provides and analyzes context. Until we do, there's zero chance we can teach AI to replicate the process.
And only the most sophisticated and highly intuitive human thinkers are good at providing context. (That's why the internet is filled with ill conceived garbage passing itself off as analysis.)
But what is Intutive? Nobody understands this either. Until we do, how do we teach a computer?
Right now, AI essays are a garbage pail full of word soup. Kind of like a speech you'd hear at a typical political rally. Lots for phrases, no meaning. And AI poems are far worse than Hallmark. Read one some time. And AI wikepedia type entries have far more made up factual innacuracies than even Wikepedia itself. It's worthless.
Yes, Invidia is making real profts - but by sellling billions of dollars of chips to companies liked Meta, that have no real way to monetize this AI.
So maybe the Asians are not so dumb in missing out on this AI fantaticism. (Even though they make most of the chips) Maybe right now it isn't so transformative. Perhaps one day. But right now it will not provide any miracles.
The same debt bomb is exploding in the same debt soaked global economy. The same strong men morons are being elected all over the world to beat our supposed oppenents into submission while the real enemy is still DEBT. And the same strategy of buying votes and weapons with ever more debt is the only answer ourn politicians have.
Nothing's changed.
It won't be long before that's apparant. And the same protection against debt is still Gold.
That's what the Asian economies get.
Maybe somebody the West will come around to this point of view too,
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