Gold had a big day Friday in the wake of the news that we might be going to war with Russia over Ukraine. The Gold ETF (GLD) was +1.91% on 3x average volume. Combine potential geopolitical conflict – and don’t forget China and Taiwan (see “Ukraine Is A Distraction From Taiwan”, Elbridge Colby and Oriana Sklyar Mastro, WSJ, 2/14 [SUBSCRIPTION REQUIRED] – with surging inflation and you have the recipe for all time highs for gold.
If you have real conviction, consider the Gold Miners ETF (GDX) which essentially gives you a leveraged play on the price of gold. GDX was up 3x as much as GLD Friday (+5.67%) on 2x average volume.
More and more the 2020s are starting to look like the 1970s (Stagflation, Geopolitical Conflict) with Joe Biden playing the role of Jimmy Carter and Jerome Powell that of Arthur Burns. Gold went up 25x in the 1970s according to the tweet above by Edward Gofsky. While history doesn’t repeat itself, it does rhyme.