In last week's article, I pointed out that the price of gold bullion was showing impressive strength, threatening to surpass its old all-time high of $1,920.70 USD per oz., set previously nine years ago in 2011.
It may or may not happen at next week's FOMC, but that hardly matters. What's important is that a policy shift is coming and the impact upon the precious metals will be significant.
Both gold and silver bullion continue to trade higher at the time of writing, moving in lockstep with the ever increasing global instability—with none other than Central Banks leading the charge.
Market fundamentals continue to pile up on the negative side. ECB sits on its hands—i.e., does nothing new—and the Fed slashes liquidity, all while commercial real estate loan losses mount, retail mortgage delinquencies soar at a record pace, and the $600/week for numerous Americans ends in two weeks.
There was a time when the total U.S. fiscal deficit and debt seemed to matter. Apparently, that time has passed.
Oh, my goodness. The good old days. I'm old enough to remember 2009 and all the rage about "exploding deficits" and "stealing our children's future". Heck, I even flew a Gadsden Flag for a while and attended a "Tea Party" rally near my home.
For as long as I can remember, I've stated that negative nominal and negative real interest rates are the key, primary driver for higher gold prices. And now we're seeing this play out in real time.
