Here we see the correlation of Gold (XAUUSD) and M1 (money supply composed of physical currency and coin, demand deposits etc). During the last two financial crises (DOTCOM and SUBPRIMES), the central bank raised the rates to support the stock market collapse and save the economy from recession.
As you see when rates were raised and money supply spiked, Gold started rising as well as a counter to inflation. Similarly, Gold has spiked since March 2020 when the Fed announced the trillion dollar rescue package to counter the shattered demand from the COVID lockdown.
In our opinion that makes Gold a necessity to any investor's portfolio on the long-term.
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As you see when rates were raised and money supply spiked, Gold started rising as well as a counter to inflation. Similarly, Gold has spiked since March 2020 when the Fed announced the trillion dollar rescue package to counter the shattered demand from the COVID lockdown.
In our opinion that makes Gold a necessity to any investor's portfolio on the long-term.
** If you like our free content follow our profile to get more daily ideas. **
Comments and likes are greatly appreciated.
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Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial