Gold's Tremendous Rally
Gold is experiencing a face ripping bull market, leaving every other asset in the dust this year. With the OG sound money asset exploding higher, sends a signal for how Bitcoin is likely to follow.
G’day Folks,
The prevailing bull market for gold is breathtaking.
We’re watching the price of an inert yellow metal punching fresh all-time-highs daily, adding around $9.4 Trillion to its market cap since 2024 (assuming a global supply of 216,265 tonnes). Gold started the year at a price of $2,600/toz, and is currently trading at $3,460/toz, up +33% already, and it’s only April.
For a sense of scale, every $250 move in the gold price adds ~$1.75 Trillion to the market cap, which is equivalent to the entire Bitcoin market cap at a price of $88k.
What I find so fascinating about gold, is I believe it offers us a historical lens into how Bitcoin trades as a fledgling sound money asset, and a contender for the role as a neutral global reserve asset.
Both gold and Bitcoin tend to experience multi-year periods (or decades for gold) of chop and bear markets which go nowhere…until they eventually explode and reprice higher in unstoppable bull markets.
Sound money assets tend to do nothing most of the time…and then reprice all at once.
Investors are shaken out and demoralised by boring downtrends for years, only to sell everything at the bottom, and miss the tremendous move high that follows.
Most just don’t have the patience to HODL on, and see the thesis through (or, more often, they don’t even develop a thesis at all).
In today’s post, I want to dive into the gold market, and explore how I personally use it as a key input to my thinking about macro conditions, Bitcoin, and my own portfolio construction.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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