ππ Gold isn't falling because it suddenly became unpopular. It is falling because when the Fed flexes its muscles, the US Dollar gets stronger. Investors temporarily rotate into bonds because the yields look juicy. Gold does not pay interest, so it gets sidelined.
But let's be real. Governments print money like it is a hobby. Inflation may cool but it never disappears. Trade tensions, sanctions & geopolitical risks are not going away. They are multiplying.
Gold is the asset you hold when you believe the world will eventually remember that Paper money is a promise and Gold is real.
That is why I continue to hold $iShares Gold Trust(IAU)$ as it has a lower expense ratio of 0.25% compared to $SPDR Gold Shares(GLD)$ 0.40%. It is simple, low cost & efficient. IAU is physically backed by real Gold, perfect for long term hedging.
IAU is my "calm in chaos" ETF - the one that just sits there, quietly protecting my purchasing power.
@Tiger_comments @TigerStars @Tiger_SG
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