1 oz American Gold Eagle Coin BU (Random Year)
Top Pick
$3,047.89
GoldPrice.
WHERE THE WORLD CHECKS THE GOLD PRICE
Holdings
2,911.17
-9.02
-0.31%
Premium over spot gold: %4.6
The above is the basic gold price for a quantity of US Gold Eagles at Apmex the largest US bullion dealer. The premium in historical terms is still quite low. This tells us that despite the impressive run up in the gold price, very few Americans are buying gold.
It also tells us that this is currently changing. The spread has widened a almost 2 percentage points in the last 2 weeks.
The US domestic economic situation it rapidly deteriorating. All those who thought that Tarrifs were simply a clever bargaining ploy have been proven wrong. They are now premanent policy. And they accomplish three important things for GOLD.
1) They are highly inflationary, as they are paid for almost entirely by American business and consumers.
2) They are a massive drag on business activity and economic growth. These two factors spell Stagflation, which has entered the vocabulary of almost every economist not employed by the current administration.
3) Perhaps most important for Gold: Tarrifs weaponize the US dollar thus destroying the usefulness of the US dollar as a reserve currency.
Even as the US was running a current account deficit (trade deficit) we were also running a commensurate financial account surplus. This meant that while other countries sold us goods they also bought the US dollar which they then recycled into US DEBT thus financing the US lifestyle, keeping goods cheap, inflation under control and growth humming.
This game is DEAD.
And the only beneficiary is gold. Every Central Bank in the world now understands this. The central banks of the world are selling US debt and buying GOLD.
At some point the US consumer will catch on to this new game. Then Gold will really move.
Don't be the last to catch on.
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