My Interview on Kitco: Where is Gold Going and Why?

Mish

I was on Kitco a couple weeks back. Here is a link to the full YouTube interview.

Kitco Interview

We discussed the price of gold, factors affecting the US dollar, negative interest rates, the housing bubble, and how the election temporarily affected the price of gold.  

Key Discussion Points

  • The price of gold is not a function of movements in the US dollar except in the extreme short term, and even then, not always.
  • Stop being so US-centric about the dollar itself.
  • Gold does poorly in disinflation and when faith in central banks is high. Recall the Greenspan era.
  • Why the election had a short-term negative impact on the price of gold. 

Mish 

Comments (23)
No. 1-8
Dodge Demon
Dodge Demon

Never mind that, what about Daniela Carbone, where did she go?

goldguy
goldguy

Nice Job Mish, I agree that the gold price is indicative of the faith, or lack there of in government. Looks to me like gold and the mining shares have a good future.

Realist
Realist

Off topic. Sorry. The supreme court rejected Texas' bid to overturn the election.

Next up, the coup. I hope he tries. I would love to watch it unfold.

Eddie_T
Eddie_T

Thanks Realist. I was fishing and missed it. Glad to hear Paxton was sent packing.

Nice video Mish. Thanks for that too.

You always make great points and make me look at things from a slightly different perspective. I appreciate your honesty too, in not making some some specific call for gold when they try to put you on the spot.

My question for you......if you can’t count on gold to be an inflation hedge, and it does poorly in disinflationary periods....and it’s price is largely driven by sentiment.....why would one hold it rather than some other tangible asset like real estate...or some other tangible asset.

My take has always been that the primary function of gold was for protection from an actual currency collapse. Or innsurance against the collapse of the entire credit system.

If that isn’t imminent, it seems like you’d want to be light on gold, compared to other assets.

Zardoz
Zardoz

@Mish: your voice would be much clearer if you were closer to the mic. Cuts down on the echos from the room. Most modern headsets and earbuds do a pretty good job managing that, too.

chamneyce
chamneyce

Mish, I enjoyed your interview. I agree with Zardoz. My ears are getting so bad I don't even listen to some people where the room echo is that high, but I did lesten to every word of yours,

Bid
Bid

You said that the Democrats did not win the Senate. That is yet to be determined due to the Georgia Senator runoff elections in January. Looking at the polls, Democrats Osoff and Warnock seem to be outpacing the Republicans. The Georgia Republicans are not as United and cohesive due to Trump blaming the Georgia Republican legislature for his loss. As of now, my working assumption is that there will be a Democratic sweep in January along with a rapidly rising gold price. This conforms to your view that the gold price reflects confidence in the US government and FED. Looking at the technical picture of silver, the 30 moving day average is about to surpass the 200mda. Timing wise, everything looks priced for perfection for gold in the near short term.


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