Gold prices are going to sell and it Could even reach three thousand dollars In 2023. now this is a ball prediction By saxo bang and if you investigate Further it really isn't a crazy forecast Now it's obvious that I am a gold bull But since inflation started to soar Around seven percent I was calling for Lower prices because fundamentals for Gold were truly very very Bleak but Things are starting to materially change And we are not just talking about the Rate hikes by the Federal Reserve they Are big geopolitical moves happening They are setting up the perfect storm For gold prices to fly up in price now I'm not sure if I'll hit three thousand Dollars by 2023 but I really won't be Surprised at two thousand dollar goal Next year and if we look at ghost Performance in 2022 it is near flat and Was actually positive just a few days Ago in contrast we have the stock market Crashing by 16 which tells you something But they really has changed guys Rising Rates are supposed to crush both gold And the SMP investors should leave goal Because the risk-free rate is higher While higher rates will crush companies And crash stock prices right but gold is Still surviving and holding strong and Hasn't really been affected much this Entire year in fact it might just be the Best performing asset in 2022 and it
Seems that we have an incredible case Building for gold to explode which Starts with the Federal Reserves rate Hikes and inflation and according to Ollie Hansen the head of saxo bank's Commodity strategy 2023 is the year that The market finally discovers that Inflation is set to remain a blaze for The foreseeable future right sure Inflation is coming down we have November CPI dropping to under 7.1 Percent but that is still insanely high If we just have three years of inflation At that level you will lose almost 20 Percent of your purchasing power that's How stupidly High it is still now he Believes that people are going to lose Faith that the Federal Reserve can keep Inflation under control and as we all Know the longer inflation ranges on People are going to wake up and they Will head towards gold sooner or later But what Hanson said next tells us There's a bigger game going on he Mentioned how a war economy is Inflationary and we expect investors to Realize in 2023 That central banks are Not going to be able to keep inflation Under control basically we have two Wars Going on one is the conflict Ukraine but The bigger one is the economic war going On between the west and the East between The United States and oil producers like OPEC and Russia and this is what we have
To break down today because the future Is big for Fiat currencies in the stock Market but it's looking real bright for Gold now first let's understand why Inflation is going to stay high even Though it is slowly creeping down it is A good thing for gold to see inflation Slowly taper down instead of staying High now the problem with the markets is That everyone is just focused on the Federal Reserve and no longer on Fundamentals right we're on the hype Train and how the market moves the Depends on the inflation rate and it is This inflation number that will control The Federal Reserve rate hikes and That's why even though inflation has Sought to all-time highs gold kept Crashing down that's because the higher Inflation goes the more the market Anticipates the FED will continue to Hike rates now inflation hits nine Percent that just means bigger rate Hikes are coming and higher rates are Bearish for gold but they just don't Understand that inflation itself at that Crazy level is the problem right however People are starting to realize the truth Now power came out yesterday in the fomc Meeting highlighting how terrible Inflation really is right he said we Understand the hardship that high Inflation is causing and that we are Strongly committed to Bringing inflation
Back down to our two percent goal so it Sounds like more rate hikes are coming But I want us to really look at the Federal reserve's actions more than Powell's words because he's still trying To balance the economy with price Stability he's still trying to attempt The soft Landing fantasy see and that's Why he just increased the fat funds rate By only 50 basis points in December if He's really serious about inflation Fighting the FED funds will easily be Above seven percent today what we have Is the Federal Reserve coming towards a Pause probably sometime in early or Mid-2023 Paul has said before that he Wants to get interest rates above Inflation he wants real interest rates To be positive but he's going to count On inflation falling down below interest Rates and not rates going above Inflation now there's a big difference Here and this means the FED is probably Going to take a pause after the next two Or three hikes and those hikes are going To be milder at probably 25 or 50 basis Points each and if you look at the core Inflation it is starting to stabilize at 6.4 percent and we have the FED funds Now at 4.5 percent the Gap is narrowing And the FED doesn't need to hike much More I believe they will hike to at Least five percent and then let Inflation fall down gradually below
Interest rates now I've been calling for Five percent for the longest time and I'm going to stick with that prediction Now this fat pulse is likely going to be Bullish for gold inflation is going to Come down in a way that will signal Fewer rate hikes but as it Falls slowly It will remind people that we are still In an inflation hell and as people still Have some breathing room to spend money Is going to flow more into gold but Things are going to be quite different In the stock market right because if the Fat is going to let inflation slowly Taper off down half a percent a month or So this means rates are gonna stay high Remember that there's always a lack Effect of monetary policy and we're Already seeing growth starting to slow Now power he made three critical Statements telling us that even the Federal Reserve is expecting a recession To come now statement number one growth In consumer spending has load from last Year's rapid Pace in part reflecting Lower real disposable income and title Financial conditions so Paul was telling Us that an earnings recession is coming Many top CEOs including Jamie Diamond of JP Morgan have been been telling us that Consumer dollars are evaporating and Inflation is going to destroy the Economy now statement number two Activity in the housing sector has
Weakened significantly largely Reflecting higher mortgage rates which Makes total sense U.S housing demand is Starting to calm down and we can see new Home starts especially family homes Crashing month after month people just Can't afford the higher mortgages guys Especially when they have to lock in 30-year mortgages at over six percent Nearing seven and that is totally insane So what we have is people abandoning Home ownership and spending more on rent And statement number three higher Interest rates and slower output growth Is also appear to be weighing on Business fixed investment if we look at The boring rates for companies they are Still more than double what it was just 12 months back U.S corporate bonds are Packed around 5.1 percent and good luck If you're a triple B or Triple C company You can just forget about raising money Right so what we have is a situation of The economy slipping through recession And stock prices still not reflecting That the Sheila p ratio is at 29 which Is still crazy high showing the market Is still pricing in high multiples right As though interest rates are still near Zero percent and when this reverses and Reality hits a lot of money is going to Exit equities and likely rush into gold Remember inflation is still Sky High and Even if it averages around four or five
Percent in 2023 it is still eroding Purchasing power when people realize Inflation is prolonged and the markets Are collapsing they'll be forced to move Towards a true store of value guys but Let's talk about geopolitics for a Second because all these interest rates And recession talk there are just one Half of the equation and we have sexual Bank also calling for the US dollar to Lose relevance in 2023 and Beyond China India and OPEC are going to slowly Detolarize now gold is not only an Inflation hack it is an asset without Counterparty risk physical gold is free From American sanctions and we're going To see more countries get tired of the Dollar's weaponization and according to Their strategies Raymond Wong a natural Solution for China and its many trading Partners particularly energy and other Commodity exporters would be to find a New non-national currency Reserve asset Upon which to trade and it's very likely This could involve gold now there are a Ton of signs that gold is going to come Back in a significant way right just Like how the US has weaponized the Dollar at interest rates we could very Well see the East like China and even Russia weaponized gold in return now Just recently China reported an increase In their gold reserves right they added 32 tons of gold and this disclosure came
Three years after their last reported Increase in 2019 and we all know China Has been buying much more gold than that And it serves no benefit to announce a Huge increase right when you are Accumulating gold or any other asset you Want to be buying when prices are low You want to be buying when prices are Cheap and that's why I believe China's 32-ton announcement is a Battle Cry To The World they are sending a message They are announcing that they have a Bigger agenda with gold and it won't Surprise me if it is a gold back Currency guys and let's also not forget The central banks around the world are Also aggressively buying gold Global Central Bank gold reserves are back to The mid-1970s level and they bought over 400 tons in just Q3 this year alone That's a massive amount of gold because They know the end game right Fiat Currencies they are dying and as the Dollar loses his reserve status a lot of Things a lot of things can go wrong and The us could impose Financial sanctions On countries like China or maybe the EU Manages to successfully confiscate Russian assets and all these events are Pushing countries towards stockpiling More gold but here's the interesting Thing we have Goldman Sachs coming out Saying that gold will outperform Bitcoin In the long term and we have to talk
About this like how I believe things has Motivately changed our goal the Situation has shifted for Bitcoin as Well and not in a good way now the Problem with Bitcoin is that it doesn't Have any practical viewable use compared To gold and he has crashed over 60 this Year as rates went up so we can safely Say it isn't a stable store of value and Unlike gold Bitcoin can't be used in Industry or made to jewelry it is stuck In the digital realm and this is where Things are gonna get very very tricky And the big monster coming for Bitcoin Is regulation and the SEC is going to Clamp down hard on cryptocurrencies Because now is the best time to slap Cryptos with standards and restrictions And we have FTX at SBF to tank for that And the first problem is the issue with Cbdcs now every country in the world Will eventually launch their own digital Currency the FED is experimenting with DRS and once the digital dollar comes Out it is likely they won't tolerate Bitcoin as a competing currency and I Think this is one hit win that crypto Bros they are just refusing to see if The government forces people to pay Taxes or buy real estate for example Using the digital dollar your Bitcoin Will have to be converted to the cbdc to Buy stuff your physical body it exists On a material plane not the digital
Realm and because cbdc's are Programmable money the FED can just Write a line of code that prevents any Swap from the digital dollar to bitcoin And vice versa right it's a real serious Terrorist that could crush cryptos and This is why central banks they are Stacking gold and not cryptos they don't Want to lose control of their own Currency and they also know cryptos have Counterparty risks and that is against Other countries cbdc so for example Let's say your Australia Central Bank And the whole Bitcoin and one day the Federal Reserve doesn't allow Bitcoin to Be swapped for the digital dollar then Australia stash of Bitcoin is now less Valuable right they can't be so swap to Buy goods and services in America or to Buy U.S treasuries and this is why Goldman favors gold rather than Bitcoin And as Jeff Curry puts it the Development of real use cases is also Crucial to reducing bitcoin's volatility But is by no means guaranteed and may Take a long time to play out Bitcoin Just doesn't have any meaningful utility Yet and when a big diversification comes Gold will win over Bitcoin and this is Why gold will likely stay strong in 2023 We shouldn't forget that there's always The chance the Federal Reserve pivots Early power could lose his mind and Start printing money all over again
Right and this is what saxo banks also Factoring into their three thousand Dollar gold forecast they believe that The FED is expected to stop hiking rates In early 2023 and if a recession comes Central banks will cut rates print and Flood the economy with liquidity and This is why I've been buying physical Gold over the past 12 months as well Even as prices crash I've been still Picking up more ounces and here's the Thing guys physical premiums for gold They have gone up just a while back in Singapore a one ounce gold coin about Was trading at around three percent Premium and now he has gone up to four Or five or even six percent easily and This tells me people on the street they Are waking up and there's going to be More momentum heading to goal and as I Always I'm still a buyer because I don't Trust the FED to do the right thing so Let me know what you think in the Comments below we are 2023 be a good Year for gold over the Federal Reserve Keep hiking rates and Crush everything Let me know in the comments below stay Safe be sure to smash the like button And subscribe as we navigate through These crazy times
