The Kobeissi Letter has been ahead of the curve on this one, and now, their biggest call of 2024 has come to fruition—gold has shattered all-time records, surging past $3,000 an ounce. In just 13 months, its market cap has exploded by $7 trillion, bringing gold’s total value to an unprecedented $20 trillion. To put that in perspective, gold is now worth more than the next nine largest assets combined. This isn’t a rally. It’s a fundamental reordering of the financial world.
The signals were there for anyone paying attention. For years, gold and the U.S. dollar moved in opposite directions, but 2024 broke that long-standing correlation. As the dollar strengthened, gold refused to fall. The Kobeissi Letter recognized the shift early, seeing it as the first sign of something breaking beneath the surface. When Bitcoin’s price relative to gold peaked in December, the second confirmation arrived. The so-called “digital gold” failed the stress test of market instability, while real gold became the asset of choice for capital fleeing uncertainty. Bitcoin was never a safe haven—gold is.
Government spending has only fueled the fire. With the U.S. running a $2 trillion annual deficit and total expenditures exceeding $7 trillion for the first time since the pandemic, confidence in Treasuries evaporated. Investors didn’t just hesitate—they bailed, shifting their money into gold at an astonishing rate. Physical demand exploded, with gold inventories in COMEX vaults surging by 115% in just two months. A crisis is being priced in, and those with money aren’t waiting to see how it plays out.
The illusion of stock market gains is another harsh reality few want to acknowledge. Since 2006, the S&P 500 has risen 382% in dollar terms, but when priced in gold, the index has been flat for nearly two decades. Inflation, meanwhile, is roaring back. The latest data shows long-term expectations hitting 3.9%, their highest level since 1993, with short-term inflation expectations spiking to 4.9%. The Kobeissi Letter called this, too. The Fed’s refusal to hike rates aggressively when it mattered has led to the worst of both worlds—rising inflation and stagnant growth. Stagflation is here, and gold is the only thing that sees the truth.
Sources:
https://x.com/KobeissiLetter/status/1900532194348515455