ZIJMF - Flight From Money
2024-05-20 18:03:16 ET
Summary
- The rally in metals such as copper, gold, and silver suggests a "flight from money" situation amid concerns of hyperinflation.
- Silver, copper, and uranium have seen significant rallies, indicating a shift towards precious metals and industrial commodities.
- The US budget trajectory and the concept of "fiscal dominance" are influencing the behavior of commodities and the US dollar.
“Men in general are quick to believe that which they wish to be true.”- Julius Caesar
Looking at the significant rally in all things metal related on Friday, such as copper, gold, silver to name a few, when it came to selecting our title analogy, we reminded ourselves of the economic concept of “Flight for Money”. It is a situation in which people in an economy start to lose faith in their paper money and as such start saving in the form of assets such as gold or silver. Traditionally, such a situation occurs during periods of “hyperinflation”....
Flight From Money