James O'Byrne on Gold is now $4000 per ounce
James O'Byrne
Gold is now $4000 per ounce
Claims and stances
Transcript
- 0:00 Last week, gold hit the $4,000 mark per ounce on the New York Shock Stock Exchange.
- 0:08 And this has major implications for the economy, geopolitics, and the world as a whole.
- 0:15 First off, gold is it is a very tangible asset.
- 0:19 And this the shift in the concentration of funds in tre U.S.
- 0:25 treasuries because US treasuries and gold are seen as safe safe assets that safeguard value.
- 0:32 But the real shift from these uh fixed income assets to tangible assets like gold is really shining a light on the unpredictability of the um of the government and the current administration as a whole.
- 0:46 And uh typical consumers and everyday consumers and everyday investors are very uncertain in um the value that is being stored in the government.
- 0:54 So they're shifting their allocation towards gold and uh because gold is more secure asset that holds more value uh than treasuries and uh um even equities right now.
- 1:07 But it's very interesting because equities and uh we did have a pullback on Friday, but in uh recently equities and gold have been increasing at the same level, which is very, very um it was just not common, very uncommon uh because normally it's it's they're inversely related.
- 1:26 When gold prices go up and gold prices surge, equity prices tend to draw back and uh not do too well.
- 1:32 But before every major recession, uh 2008, 2000, 1987, um this there's been a start, there was a correlation between the stark increase in prices of gold and the stark decrease in price of equity.
- 1:46 So this would be a very interesting story to follow as um we get we close out uh quarter three and uh we we head into quarter four and uh the end of the year.