Fake Internet Money & Real Money

April 9, 2024

Think of Gold as the stable asset. And then stocks and other forex markets are just trading up and down relative to the price of Gold.

This week we discussed the fact that currencies all over the world have been losing their value, particularly relative to the price of Gold.

But this month now even the US Dollar has broken down relative to Gold.

So if we're going to take the value of stocks and other fiat, and price it in Gold, then we should treat Crypto the same way.

Here are Bitcoin and Ethereum priced in "Real Money":

I think we ultimately do get "Real" breakouts in the Funny Money above.

But they're definitely still stuck below those 2021 highs.

When you start to see them go on an absolute basis, my suspicion is that they will break out relative to Gold as well.

That will be a big signal.

Gold keeps breaking out relative to almost everything else.

So if BTC and ETH and make new all-time highs priced in Gold, that would be really impressive.

In the meantime, we're sticking with the yellow metal.

Click here to get my short-term targets for Gold & Silver.

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