RT Barchart (@Barchart)Google Searches for Dollar "Debasement" soar to highest level in history 🚨🚨🚨 https://t.co/StG3Y1dtKp ...

Core Viewpoint - Gold's significant price drop in 2025, with a more than 5% decline in a single day, marks the largest daily drop since 2013, yet it remains up over 50% year-to-date, indicating ongoing volatility in precious metals markets [1][2]. Group 1: Market Performance - Gold's price fell by $230 in a single day, reflecting a broader volatility in the market, with silver also experiencing a 7.5% drop on the same day [1][2]. - Despite the recent selloff, gold has outperformed equities, bonds, and Bitcoin, highlighting its strong performance over the year [2]. Group 2: Market Dynamics - The recent volatility is attributed to leveraged trades and profit-taking, with analysts suggesting that this pullback is not indicative of a full-blown crash but rather a temporary setback [3][4]. - The underlying fundamentals for gold remain strong, supported by central bank accumulation, ETF inflows, and steady demand from China [5]. Group 3: Economic Factors - Gold's rise in 2025 is driven by concerns over dollar debasement and de-dollarization, as Western deficits and monetary expansion weaken confidence in fiat currencies [6][7]. - Emerging markets and BRICS nations are increasingly turning to gold as a hedge against reliance on the U.S. dollar, further supporting gold's market dynamics [7]. Group 4: Future Outlook - Analysts believe that gold could experience further declines without breaking its long-term uptrend, with a potential low of $3,973 still consistent with a structural bull market [5]. - The narrative surrounding gold remains intact, with ongoing fears of fiscal and monetary policies devaluing fiat currencies continuing to drive market interest [6][8].

Economic Data Overview - The latest NAHB housing market index shows a slight improvement, coming in at 37, above the expected 33, but still indicates a contractionary sentiment in the housing market [2][3] - The Philly Fed manufacturing index has turned negative, dropping 36 points to -12.8%, the lowest since April, with significant declines in shipments [6][7] Housing Market Insights - The housing market remains in a dismal state, with any index below 50 indicating pessimism; however, there are signs that future interest rate reductions could stimulate buyer activity [3][4] - Inventory levels are increasing, which may lead to lower prices in the housing market [4] Manufacturing Sector Analysis - New orders in the manufacturing sector increased by six points, while the employment index slightly decreased to 4.6% [8] - The manufacturing landscape shows variability across different regions, with the Empire State manufacturing index performing better than the Philly Fed index [8] Commodity Market Trends - Gold prices are reaching new all-time highs, driven by FOMO trading and market volatility, with significant inflows into gold ETFs [11][13] - The energy sector is experiencing downward pressure on prices due to economic growth concerns, with natural gas prices also declining [15] Oil Market Dynamics - The oil market is skeptical about claims from India regarding reducing Russian oil imports, as alternative supply sources are not clearly defined [17][18] - A potential meeting between President Trump and Ukraine's president could lead to an LG deal, which may positively impact oil prices due to the correlation between LG demand and oil prices [19][20]

The challenge with measuring financial returns in dollar terms is that the denominator is manipulated with little transparency.Asset prices denominated in dollars can continue growing in value by simply allowing time to pass as central banks debase the currency.Instead, investors should consider measuring their investment returns in a finite asset with sound money principles.The lack of manipulation in the finite asset will provide much more clarity about the alpha being generated by a specific asset or str ...

Market Trends & Investment Opportunities - The report suggests that breaking through \$120,000 in Bitcoin and \$4,000 in Ethereum could lead to rapid market movement [1][7] - The administration is considering eliminating capital gains tax on housing to stimulate the housing market by unlocking transactions and enabling people to sell homes [1] - Re-industrialization is occurring, driven by AI embodiment, requiring hardware, data centers, and power, shifting focus from software to energy, materials, and mining [2] - The US grid system is under strain due to the energy demands of AI data centers, leading to skyrocketing megawatt per day pricing and a shortage of data center space [2] - The report highlights a potential shift in market leadership from the MAG7 to a broader range of companies in the energy, materials, and mining sectors due to re-industrialization and AI [2][17] - Bitcoin is catching up to gold in performance, and the report suggests that Bitcoin relative to the S&P 500 and especially the MAG7 is the most important chart for the rest of the year [7] Economic Factors & Policy - The Fed's independence is questioned due to fiscal dominance, with a massive debt situation and a deficit of 6% to 7% requiring lower interest rates to manage interest expense [4] - The report suggests that the Fed may need to focus on the debt and deficit problem, potentially changing its views on monetary policy [5] - The report mentions that the market isn't expecting a rate cut at the next meeting, so a cut would be a massive surprise [5] Labor Market & Automation - There is a massive shortage of labor in energy, physical world, manufacturing, and blue-collar companies, suggesting robotics may fill the gap rather than displace workers [3] - The report indicates a need for 500,000 workers solely for the power side of the electricity grid [2] Retail Investor Influence - The report emphasizes the growing influence of retail investors, with meme-driven investments and a shift in market dynamics [7][8][9]

What if the financial models are actually all broken because the government can't stop debasing the dollar at an accelerated rate? ...

Federal Reserve Policy & Presidential Influence - The President desires lower interest rates and expects the Federal Reserve (Fed) to align with his objectives, despite potential conflicts with sound monetary policy [1][2] - The President might replace the Fed chair with a more dovish nominee to achieve his desired policy outcomes [2] - A Fed that prioritizes the President's agenda over its independence could negatively impact the dollar's value due to concerns about biased policy and currency debasement [3] Potential Treasury Actions - The President may instruct the Treasury to intervene in the bond market to suppress long-term yields [4] - The Treasury could reduce long-term bond issuance by 25%, which would have a similar impact to the Fed's largest monthly quantitative easing (QE) program [5] - Decreasing bond supply could keep yields low, but might also lead to inflation and accelerated economic growth [7] Market Implications - Actions to control bond yields could lead to rallies in stocks, gold, and Bitcoin, potentially weakening the dollar [6] - Starving the market for duration through reduced bond supply could maintain low yields if demand for Treasury bonds remains strong [7]