Is gold going to double again?
Have you ever thought about the logic behind it?
Gold can rise from 1000 to 5600; it can't just be retail investors or a few institutions buying it, right?
During the 2008 U.S. subprime mortgage crisis, the emergency interest rate cuts and bond issuance, who globally has the capability to take it on? Only China, but now China is no longer buying U.S. bonds. China wants to reduce its dependence on the U.S. dollar, and the RMB wants to change its anchor, so it can only buy gold like crazy. The U.S. has to solve the problem of the ever-expanding U.S. debt without new buyers; the only option left is to buy gold.
The U.S. debt issue is something the government, which is very reliable, urgently needs to solve, which is why there is a bull market in gold and stablecoins like Bitcoin.
After 18 years of the China-U.S. trade war, the People's Bank of China stopped buying U.S. bonds and turned to buying gold. In 2022, when the Russia-Ukraine war broke out, Russian and U.S. assets were frozen, and other central banks followed suit in buying gold.
The scale of gold has already matched that of U.S. debt; unless one day we see the very reliable government having a drink and laughing with our boss, otherwise, keep going long on gold!
