Here is Why You MUST Accumulate Gold

BY BILL GRIFFO

December 13, 2023

Hey Income Hunters,

According to the latest retail sales data in China gold and silver jewelry has only been beaten by garments as the best performing assets in 2023.

Reuters reported on the topic last week with a survey that showed 70% of Chinese consumers between 18 and 40 intend to purchase pure gold jewelry … Read the full report here …

“Incomes, real estate, and the stock market are not really appreciating,” … “Gold is a little bit of a unicorn in this environment.”

~Said a managing director of consulting at Digital Luxury Group in Shanghai.

This trend will have a major impact on US markets once domestic investors here seek a safe haven during the next “risk-off” environment.

Largest Gold Buyers in the World

China and India, the world’s two biggest gold buyers, together account for more than half of total global demand. China’s market share for buying gold jewelry has surpassed India in 2023 …

In China, the premium paid for Shanghai gold over western gold spiked higher during the failed breakout higher for western gold last week.

The premium spread reached a premium of $25 to $35 per ounce in the past week, which is above its usual $5 to $15 range.

The chart below shows the 200-day moving average of the price of gold in Yuan going back 18 years …

What this means for you …

Most investors do not realize that as western banks attempt to cap gold’s price, China lets gold rise and this will continue to strengthen the US dollar significantly versus the Yuan.

Now, this used to be a problem for China, but today China is able to buy oil in Yuan, which greatly reduces the negative impact of a stronger dollar … This is a major change from the past.

Meanwhile, if USD becomes “too strong” it causes the UST market to dysfunction, which forces the Fed and Treasury to inject liquidity to stabilize prices (inflationary over time) .

Understanding this process is critical to understand because it suggests that the 200-day MA chart gold priced in USD will begin to mimic the 200-day MA chart of CNY gold … and virtually no one owns physical gold in the west.

Don’t miss the opportunity to buy Gold on this pull back (chart below) …

Gold is a must hold in a portfolio of quality stocks, (i.e. industrials, commodity, and energy), “risk-free’ inflation protection bonds (TIPs), and BTC …

Dollar cost averaging and extra allocation on dips is a solid longer-term approach and will make the difference for building generational wealth …

Let’s Go!!

Bill Griffo