Today we’d like to share our latest monthly update from Chris Tipper, our Chief Economist posted on Ainslie Bullion last week. His analysis offers invaluable insights into how Global Liquidity is shaping the trends in Gold and Bitcoin, providing actionable strategies for investors like you.
The report updates everyone on the Liquidity Cycle's progression. This cycle plays a pivotal role in outperforming the ongoing worldwide debasement of fiat currency. While Chris primarily focuses on Bitcoin, he stresses that the insights are equally applicable to Gold, as both are key “Monetary Inflation Hedges.”
Key Highlights from the Update:
1. Predictable Cycles Within Global Liquidity: Despite the long-term increase in global liquidity (think more debt), there are predictable cycles within this expansion. Governments and central banks periodically adjust the pace of new currency creation, trying to balance economic growth and stability.
2. Entering a New Cycle of Liquidity Expansion: Our latest heat map analysis indicates a shift from a period of contraction (marked by red) to an upcoming phase of liquidity expansion (green). This shift is crucial for investors to understand and leverage.
3. Gold and Bitcoin – Prime Assets for Trading: Gold and Bitcoin stand out as the most effective assets to trade in response to the Global Liquidity Cycle. Their roles as Monetary Inflation Hedges make them particularly sensitive to these cycles, as evidenced by their increasing correlation with the Global Liquidity Index.
4. US Government Debt – A Signal for More Inflation: The exponential rise in US Government Debt, a trend mirrored globally, signals inevitable monetary inflation. The growing interest payments on this debt necessitate further liquidity injections, emphasising the importance of understanding Monetary Inflation Hedges.
5. Outperforming Monetary Inflation: By leveraging the right tools and understanding the liquidity cycle, our goal is to not just keep pace with monetary inflation but to outperform it. For instance, a Bitcoin Buy Signal on January 10, 2023, at USD 17,179 has already yielded significant gains.
For a more detailed dive into these insights, we highly encourage you to watch the full presentation on our YouTube channel here. Your feedback is invaluable, so feel free to leave comments or questions on the channel.
As always, whether you're a traditional investor or exploring digital assets, our Gold Standard (AUS) and Silver Standard (AGS) tokens provide a seamless bridge between the enduring value of precious metals and the innovative realm of cryptocurrency.
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