Long gold because we have undersupply of materials (cement, housing, etc.) from a decade+ of underinvestment, excessive stimulus and Fed being way behind the curve.
Every 1% rise in rates adds $70B to gov’t deficit each year.
Issue amplified by Fed — who has been main buyer of Treasuries — leaving the market, while other nations less willing to buy US gov’t debt in the wake of the US freezing Russian foreign reserves.
Gold > Bitcoin because it is already a recognized central bank asset.
Fed is bluffing. Doesn’t have the right tools.
1980 - 2020 was structural deflation.
Now we have structural inflation.
Raising rates may make problem worse…thwarting supply and providing yield that creates demand.
Right now they are tightening into a recession…eventually they will have to support the Treasury and loosen, likely into an inflationary spike. That’s when you need/want gold.
Gold as % of reserve assets is very low, hence upward pressure.