{"id":1255066,"date":"2023-04-24T04:10:11","date_gmt":"2023-04-24T08:10:11","guid":{"rendered":"https:\/\/bugaluu.com\/news\/why-gold-may-be-on-the-cusp-of-another-major-bull-market\/1255066\/"},"modified":"2023-04-24T04:10:11","modified_gmt":"2023-04-24T08:10:11","slug":"why-gold-may-be-on-the-cusp-of-another-major-bull-market","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/why-gold-may-be-on-the-cusp-of-another-major-bull-market\/1255066\/","title":{"rendered":"Why Gold May Be On The Cusp Of Another Major Bull Market"},"content":{"rendered":"
\"\"<\/a><\/div>\n

Why Gold May Be On The Cusp Of Another Major Bull Market<\/span><\/p>\n

\n

Authored by Jesse Felder via TheFelderReport.com,<\/em><\/a><\/p>\n

Last week, the Treasury Department revealed that the federal deficit hit\u00a0$1.1 trillion<\/a>\u00a0in the first half of the fiscal year ending in March, $432 billion larger than the same period a year earlier.<\/p>\n

Moreover, most of this expansion came in the month of March, as spending rose\u00a036% year-over-year<\/a><\/strong>\u00a0(not in small part due to rapidly rising interest costs). Longer-term, there is a clear widening trend that began back in 2015 that appears to now have resumed after some pandemic-inspired gyrations. And, if history is any guide, this deteriorating fiscal trend\u00a0should represent a structurally bearish influence for the dollar in the months and years to come.<\/p>\n<\/p>\n

Moreover, if history is any guide, the best protection against a deteriorating fiscal situation (mathematically guaranteed by rapidly growing social security and medicare spending<\/a>) is gold.<\/strong><\/p>\n

<\/a><\/p>\n

The last time the deficit reversed from a narrowing trend and began a major widening trend, back in the early-2000\u2019s, it coincided with a major top in the dollar index which evolved into a major bear market for the greenback (inverted in the chart below) that lasted roughly a decade.<\/p>\n

This was one of the primary catalysts for a major bull market in the price of gold which rose from a low of $250 in 2001 to a high of nearly $2,000 a decade later.<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Currently, investors have little to no interest in owning gold (which is a bullish contrarian sign in my book). <\/strong><\/p>\n

As my friend\u00a0Callum Thomas<\/a>\u00a0recently pointed out, assets in gold ETFs like GLD are a tiny fraction of those invested in equity ETFs like SPY.<\/p>\n

However, there\u2019s a good chance that the deteriorating fiscal situation will over time\u00a0light a fire under investor appetites for precious metals relative to financial assets, just as it did two decades ago.<\/strong><\/p>\n

And that\u2019s exactly the sort of thing that could power\u00a0another major bull market<\/a>\u00a0for the precious metal.<\/p>\n

\"\"<\/a><\/p>\n

Got gold?<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 04\/24\/2023 – 06:30<\/span><\/p>\n

From:Zerohedge<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Why Gold May Be On The Cusp Of Another Major Bull Market Authored by Jesse Felder via TheFelderReport.com, Last week, the Treasury Department revealed that…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1255066","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-5gv0","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1255066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1255066"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1255066\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1255066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1255066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1255066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}