Gold Leaps Then Cascades To Start The New Decade


Gold closed out the second decade of the 21st century this past December 31 at the price of 1902, after which we penned our missive "Seeking Gold 2401 (+26%) in 2021".

Gold opened the third decade of the 21st century this past Monday at the price of 1908, after which -- (with a little cachet we'd like to think from our call for 2401) -- come Wednesday price had leapt up to 1962.

From there, extrapolating such robust rate of ascent (+3.2% every three days), would've found Gold reaching our 2401 target on February 4. "Cachet, baby!"

But in truth: "Correction, baby!"

As a valued veteran trading colleague of ours has quipped over many-a-decade: "All gaps get filled." And for Gold it did indeed and then some as price Friday alone cascaded -3.4% to settle at 1850 in commencing the new decade on the wrong weekly foot, its net loss being -52 points. (Fortunately, there remain 51 weeks in 2021 to achieve our Gold target of 2401).

But for the financial world at large, everything obviously is great. After all, the S&P 500 is at an all-time high. (Want to know its "live" P/E? Wait for it...) The value of money (as has become the value of stock market earnings) is clearly deemed to be irrelevant. Fully-foundationless bitcoin has now reached $40,000 (a seasoned Wall Street analyst noting that one day there actually will be an established, accepted "cryptocurrency" but that it won't be bitcoin).

Too, the four-wheel battery company Tesla (with its price/earnings ratio now 1,554.3x) ranks fourth by market capitalization in the S&P. Moreover, remember some years back when by moneyflow the S&P was "Nothing but Apple"? Today it's "Nothing but Tesla". Write this down: 91% ("ninety-one percent") of the capitalization-weighted net change in the S&P 500's moneyflow from this past Monday through Friday was Tesla's share alone. Think about this: what if the newly-empowered stateside "Green Squad" moves to eliminate batteries from the planet... "And the new Boeing 7x7 shall solely fly on solar power..."

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