‘Gold is no silver bullet’ and isn’t hedging against equity drawdowns, but ‘debasement trade’ should continue – HSBC - Kitco

Source: Kitco

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DW NOTE

HSBC acknowledges gold's 23.6% drawdown from January's peak, then argues the debasement thesis remains intact. Translation: the metal failed to hedge when equities fell, but you should still hold it because fiat currencies are being debased at 3.4% CPI. If gold couldn't protect capital during a supply shock that closed the Strait of Hormuz and spiked the VIX 33%, what exactly is it hedging?

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