What does it say about the US economy that gold and bitcoin are soaring while stocks and bonds are also moving higher to a far lesser extent?
Gold is up $32 since Monday morning, bitcoin has jumped $350 to trade at almost $11,400 in the same time period.
Stocks and bitcoin are speculative assets, which are rising as larger investors are chasing yield in a market that has little to give otherwise.
Gold and bonds could be seen as safe havens, which are being used for wealth preservation. While there is no official inflation — where gold usually thrives — we see there is global pressure to unlock the precious metals worth.
This gold float brought on by the China “tariff” talks that I wrote about earlier, has seen the ancient relic rise $150 an ounce this month alone.
Bitcoin — on the other end of the investment spectrum — has risen roughly $3,900 in June.
Certainly dollar weakness contributes to this rise, but it’s certainly it is not a proportional move with the greenback.
The one circumstance that has me scratching my head is that in the case of gold and bitcoin there is no appreciable pullback in price. No defense of the status quo, which was always present when these assets made these types of moves in the past.
It tells me that my sources may be correct in saying that the dollar’s worth as the global currency may be coming to a change and smart investors are moving to assets that can denominated in other currencies.