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Currency Down & Gold Up
Precious metals have come out swinging in the first quarter. The strength of the US dollar this week has seen many currencies growing weaker. Same too in gold market. Yet investors do not seem deterred by this week’s pullback in the PM market.
Gold and silver are negatively correlated to stocks and real estate. This is because stocks, bonds, treasuries, GICs, and real estate are all valued in dollars. Holding gold can be a hedge against currency risk. Gold and silver also track debt creation. In retrospect the charts in the price of gold in silver went higher than the debt, but have since are well under the increased debt. This goes to demonstrate that gold and silver are undervalued.
Shirley Temple’s blue diamond ring is going up for auction. A ring that was purchased for less than $10,000 in the US is going up for auction at over $25 million. What does this demonstrate? For one, it demonstrates just how much color diamonds have been a best kept secret in the last 50 years. The other aspect is shows is how color diamonds can concentrate wealth. How over the last 50 years those who have owned these rare assets have profited.