This is a news note due to events unfolding this Sunday evening. At the time of this writing, gold has clearly gone well above the old all time high price in US dollars at around $1921. Right now, spot gold is quoted on Kitco just above $1930 per ounce.
Earlier today, Ray Dalio issued comments on Fox Business about his concerns over how all these current events may impact the US dollar and economic stability. He specifically expressed concerns about the "soundness of our money" (see excerpt below).
---------------------------------------------------------------------------------------------------------------------"The biggest issue Dalio is worried about is "the soundness of our money."
"You can't continue to run deficits, sell debt or print money rather than be productive and sustain that over a period of time," Dalio said."
Go To Fox Business to find the full comments by Ray Dalio
(note- Fox Business does not permit direct links to articles - search for Ray Dalio)
-----------------------------------------------------------------------------------------------------------(note- Fox Business does not permit direct links to articles - search for Ray Dalio)
My added comments: Obviously, we have a lot of potential stressors going on in various markets alongside a pandemic, the economic fallout from a pandemic and now also geopolitical tension. It pretty much goes without saying that readers need to monitor events closely with all this going on at the same time. I quickly asked Jim Rickards if he would like to offer some thoughts on the events we are seeing tonight. He kindly replied with the email comment below for readers here:
"This new price spike emerged in Asian trading on July 27 before London or New York had opened. Given the deteriorating state of U.S.-China relations and the potential resort to financial warfare, including the possible seizure of China's Treasury note holdings as compensation for victims of China's criminally negligent handling of the initial outbreak, it could well be the case that China and its people are flocking to gold as an alternative to dollar-denominated holdings such as Treasuries." - James Rickards (7-26-2020 10:30 pm cst.)
Added note on Jim Rickards - Jim has a new book coming out in October with an update on his most recent analysis as to where he sees things headed. Pretty sure this will be another best seller.
Below is the Kitco quote at 10:18 pm central standard time. Silver also sharply higher.
| Metals | Date | Time (EST) | Bid | Ask | Change | Low | High | |
| GOLD | 07/26/2020 | 23:18 | 1937.10 | 1938.10 |
+35.80
|
+1.88%
| 1899.60 | 1942.60 |
| SILVER | 07/26/2020 | 23:18 | 24.09 | 24.19 |
+1.38
|
+6.08%
| 22.66 | 24.29 |
Added note 7-28-2020: Goldman Sachs Says Gold Spike Puts Dollar's Reserve Status in Question (thehill.com) - excerpt below:
"A record high price for gold, known as the currency of last resort, is raising questions about the U.S. dollar's future as the world's reserve currency, according to a Goldman Sachs research note published Tuesday."
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