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Jim Wyckoff

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Gold loses some luster, but…

November 24, 2020 by Jim Wyckoff

A feature in the marketplace this week is plummeting gold prices, which hit a nearly five-month low of $1,803.50 overnight, basis December Comex futures. The keener risk appetite just recently is denting buyer interest in the safe-haven metal. A few are proclaiming the recent big gains in Bitcoin, at the same time gold’s price drops, as making the digital currency the “new gold.” Most veteran market watchers reckon that notion is hogwash, as a main reason for gold being a safe-haven store of value is that an investor can store physical gold in a safe place—even at home. Gold’s value and sustainability do not depend on the viability of “the grid.” Those digital currency owners who consider their asset to be the new safe-haven replacement for gold might get this question from a veteran gold bug: “When the grid goes down, will you show me your digital currency?” One final note on gold’s descent this week: Many smart-money traders will be viewing gold as a value-buying opportunity, figuring that when global economies are back to firing on all cylinders in the coming months, and with those economies already awash in cash from central banks’ stimulus programs, very strong consumer demand will occur, resulting in price inflation being ignited–and maybe with a vengeance.

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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Disclaimer

There is a risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing on this website is intended to be a trading recommendation to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use the information on this website.

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