Gold is the canary in the coal mine

Over the weekend we have just seen gold hit a new all time high. It has been trying to break this high for the last three years.

Gold is the canary in the coal mine because it is a direct reflection of monetary policy. It is the governments score card. New all time highs for gold are telling us that inflation will likely turn up and rise again instead of continuing to fall, and that a recession is just beginning. Gold is warning of an inflationary recession starting.

An inflationary recession will see all goods services and commodities rise with inflation while assets reliant on debt fall due to recessionary forces like high debt and high interest rates. This means while scarce assets rise, assets like stocks bonds and realestate that are reliant on corporate debt sovereign debt and mortgage debt will fall.

Bitcoin will follow gold higher not just because it is going through its monetization process and not just because it is gaining technological adoption throughout society, but because it is scarcer than gold altogether.

Gold will do well over the coming years, it may double or triple in value, but bitcoin will 10x 20x or even 30x at the same time.

With gold having made new all time highs already bitcoin doing the same is mere months away, we may see new all time highs for bitcoin before the halving. New all time highs for bitcoin could be just a few weeks away.

Bitcoin is going to act like gold on steroids over the next few years.