CELENTE: Trends Journal Was Right on Gold, Here's What Happens Next
As interest rates fall, inflation will also rise. And the higher inflation rises, the higher gold prices rise.
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As we had forecast on 2 January, this year would be “A Golden Year for Gold.”
On 20 September, gold surpassed $2,600 for the first time after the U.S. Federal Reserve reduced its interest rates by 50 basis points two days earlier. With gold prices having soared some 30 percent this year, it is the biggest annual jump since 2010.
And what did 2010 look like?
It was the depths of the Great Recession.
Yes, the world was in deep recession and rather than gambling in equity markets, which sink when economies go down, true investment money went into the world’s #1 safe-haven asset…GOLD!
As Trends Journal subscribers well know, we had forecast that this would be the year of lower interest rates, and, as we had also forecast, the lower U.S. interest rates fall, the deeper the dollar will fall. And the deeper the dollar falls, the higher gold prices will rise.