Is Gold To $2,200 And Beyond Achievable?

Gold is meant to be the go to asset in times of trouble and the cliché of clichés for a rise in gold was “war in the Middle East.”

Those days of clear linkage seem to be over and many put this down simply to crypto. Bitcoin
BTC
is digital gold, or as the joke goes, “gold is Boomer bitcoin.” To me there is no doubt this is the case. Bitcoin has diluted the use case of gold as an asset for dangerous times and this is particularly the case with the idea of flight capital where people who want to flee need an asset that is as light as possible, and bitcoin has no mass at all just like the electrons that created it. However, as for now bitcoin is a private sector asset while gold is a public sector asset.

Some people say gold is obsolete because it’s just a commodity that is no longer used in currency and is therefore not money anymore and just an element good for electronics and bangles and even its usage in dentistry is no longer a big deal. However, that misses the real reason countries have gold reserves. Gold is for war. Gold is the only money when a country’s back is against the wall and it needs to buy things from the rest of the world. Paper is not so welcome, especially if you are on the losing side and/or inflating your currency to fund such a devastating situation.

So gold is not going extinct, especially when we see rising levels of geopolitical instability. Gold is also meant to protect against inflation, but this, too has not seemed to have been a factor. The gold price has not kept up with the price of eggs.

So what now for gold?

Here is the chart:

This is a lovely chart because it is simple. If there is any benefit in technical analysis, this is the perfect chart to use. It says if gold breaks this line it’s going up a fair bit. I tone that phrase down because how much a “fair bit” is a much more tricky call. If it does not then it is going to fall to $1,800 or lower.

I had a recent period of love for gold when…