Rising interest rates and high inflation, actually this is exactly the right environment for a gold bull market! or not?
When savers become afraid for their money, gold is suddenly in the front row of investment alternatives.
All this would be the case now:
but the gold boom has so far failed to materialize
Doesn’t anyone want gold?
Yes, they do!
In 2021, demand for “physical” gold was up seven percent from the previous year. In the first quarter, gold demand in Europe, fueled by the Ukraine conflict, was higher than at any time in the last ten years.
Alone, the price on the stock market doesn’t have to rise because of this
…and it doesn’t.
But why?
- You could try to set purchases and sales by governments and central banks against each other.
- You could try to blame the weakness of gold on large hedge funds that are deliberately depressing the price.
But no matter what you would find:
None of this would be compelling.
If investors around the world were to flee into gold in a panic, nothing could stop a rapid rise.
Just as the rally after the outbreak of the Ukraine conflict, it was unstoppable.
Therefore, there is really only one reason…
…and that is the simplest of all:
There is no one to push the engine to get it running.
As is often the case on the stock market.
When the first people start buying somewhere, others follow.
Not because they come to the conclusion that this would be wise, but because the rising prices suggest:
If you join in, you can earn something.
Is it that simple?
Yes, it can be that simple, but it wouldn’t even be surprising that not enough traders are willing to make…
