The Most Embarrassing Time to Be a Gold Bug

While there are tons of factors influencing the price of gold, the two main factors are lower demand for gold jewelry and a soaring U.S. dollar. [Outsider Club Header] Sep 14, 2022 By Luke Burgess for the Outsider Club The Most Embarrassing Time to Be a Gold Bug The Bureau of Labor Statistics released another hot inflation report yesterday, announcing an 8.3% increase in the consumer price index (CPI) over the past year. This marked the sixth month in a row annual CPI has increased more than 8%. [hrthr] And, of course, this really comes as no surprise. Economists and analysts like myself have been warning about significant inflationary pressures resulting from the outrageous amount of money created and handed out as “COVID relief.” In the span of two short years, the U.S. government increased the supply of dollars by a whopping 40%! U.S. Dollar Supply — 10 Years[brg] According to a report by [The New York Times](, about a third of that money went to individuals and families, mostly in the form of economic impact payments. The rest went to businesses and the government itself. Regardless of who got the money, however, such a drastic increase to the supply of dollars was bound to produce inflationary pressure. The Biggest Event in Our Company’s History For a limited time, we’re reopening access to the most popular presentation we’ve ever produced. Hosted by biotech expert Keith Kohl, this [urgent presentation]( shows you how to capture your slice of the $1.6 trillion global pharmaceutical market... And how to set yourself up for huge potential profits every single month as the FDA approves an unprecedented amount of new drugs. Over 10,000 people have viewed [the presentation]([...]( and we may have to take it down again soon... But as of right now, you can still get access. [Click here to tune in NOW.]( Mo’ Money Mo’ Problems The so-called “quantity theory of money” says prices for goods and services are proportional to the money supply in an economy. The more money that exists within an economy, the more individuals, businesses, and governments have in their pocket to spend and drive up prices. Of course, nothing exists in a vacuum, and there are a multitude of factors that influence the price of goods and services. But generally speaking, more money in the economy means higher prices. And the U.S. government added a lot of new money to the economy in a very short time. “COVID relief” was one of the (if not the) largest expansion of U.S. money supply in the nation’s history. Of course, the government and Federal Reserve tried (and are still trying) everything they could to calm investors as inflation increased. [brgb] [brgbfe] But there really never was any doubt over whether inflation would increase and remain elevated for a sustained period. So gold bugs were pumped. The last big gold bull market was in 2011, following the U.S. government’s then-called “quantitative easing” programs. These were different types of programs, but they also resulted in the U.S. government creating a bunch of new money. Between 2008 and 2012, the government created billions of new U.S. dollars used to address the financial crisis of the time. Inflation soared, and gold prices spiked to an all-time high. This time was different. The government wasn’t just adding billions of dollars to the money supply — it was adding trillions! Compare the two periods of monetary expansion. [brgbfef] So, yeah, gold bugs were excited. Well, inflation is soaring. But gold is snoring. Endless Energy Perfected at Last What you’re looking at is NOT oil, ethanol, or some crazy biofuel. But in the near future, every skyscraper, factory, truck, plane, train, bus, and boat could be powered by it. It’s so cheap and efficient it could wipe out every other conventional fuel source we use today... And hand early investors a shot at world-altering gains. [See the breakthrough for yourself here.]( Where’s Your Gold Now? In the past 2.5 years, gold has seen two very brief rallies that took prices past $2,000 an ounce, including one back in March as Russia's invasion of Ukraine kicked off. Yet despite annual CPI averaging more than 8% since March, gold has lost value week after week. Gold Prices — One Year[brgbfefgr] Again, nothing exists in a vacuum, so there are a million factors influencing the price of gold. But the two main factors are lower demand for gold jewelry and a soaring U.S. dollar. About half of all the world’s gold demand comes from the jewelry industry. According to the World Gold Council, quarterly gold jewelry demand increased slightly in Q2 2022 compared with the second quarter of last year. However, the market for gold jewelry remains weak compared with pre-pandemic norms. The council says, “While global jewelry consumption has recovered from the worst of the COVID-induced weakness seen in 2020, it has yet to regain the typical quarterly averages — of around 550 tonnes — that characterized the few years preceding the pandemic.” Gold Jewelry Demand — 2015 to Present[brgbfefgrf] Meanwhile, the value of the U.S. dollar has been absolutely ripping higher over the past nine months. As measured by the U.S. Dollar Index, the value of the greenback currently sits at over a 20-year high. U.S. Dollar Index — 25 Years [brgbfefgrfge] So what happens to gold from here? Well that’s very much dependent upon jewelry demand and the U.S. dollar. But I think the dollar will be the main driver of prices in the near term. It’s important to note that the last time the value of the greenback was this high, gold was at $300 or $400 an ounce. Then after the dollar pulled back, gold kicked off a bull market that lasted until 2011. Gold Prices — 25 Years [brgbfefgrfgee] The rally in the U.S. dollar won’t last forever, and there’s no telling how much higher the U.S. dollar will go. But sooner or later, the rally will end. When it does, I think gold will come roaring back. Until next time, [Luke Burgess Signature] Luke Burgess [icymi oc]( VERY Bad News for Biden Biden’s most recent electric vehicle plan is doomed to fail. He wants 50% of all new cars to be EVs by 2030. [ei-infinte-icymi-biden]( But it just won’t work. See, an enormous amount of lithium is needed to meet the president’s EV goal... And we just don’t have enough lithium to meet this demand. In fact, Keith Phillips of Piedmont Lithium, just admitted: "There’s going to be a real crunch to get the material. We don’t have enough in the world..." This is a big problem that has major implications for our future... but a small company in North America just discovered the solution. [They’ve achieved the unimaginable and developed a way to provide lithium — on demand!]( Without this tiny firm, Biden might as well kiss his EV goals goodbye. But the best part? Investors who understand this tech’s profit potential stand to earn a MASSIVE windfall in the coming months... [And I have all the details here in this free report.]( Follow the Outsiders [Twitter]( | [Facebook]( | [LinkedIn]( | [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. 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