Analysts use all sorts of metrics to estimate the "true Value" of Gold. S + P versus Gold, Silver to Gold, Dollar vs Gold, Global Debt vs Gold, etc etc etc.
But gold's true value lies in inverse proportion to Global Stability both economic and political (which are two sides to the same gold coin.)
The less stable the political/economic environment the more important it is to have at least some of your wealth in the most stable currency the world has ever known. A currency that can not be printed and has no counter-party risk.
Since the end of World War 2 the United States of America has been the most stable political-economic environment on earth. During those 70 years you can pretty much chart gold against US relative stability.
Right now, the United States of America is one of the least stable political-economic environments in the developed world, because our President is unstable. You might love him for that or hate him for that, but it is an undeniable fact that while most developed nations are dealing with the current crisis through universal testing and guaranteed income, the United States is currently incapable of testing for the virus and incapable is distributing the trillions of aid to the small businesses that make up 50 percent of the economy. Those two things are becoming so destabilizing that another month or two of this chaos and our economy will not recover - which is a tremendous danger to the global economy.
There is little reason for hope right now, because our president instead of solving these two problems, is busy watching TV 24/7 (except when he's on TV) and retweeting destabilizing conspiracy theories blaming China, Bill Gates, his own Virus Response team led by Dr. Faucci, and God knows who else for the problems we face rather than simply directing a universal Testing response and the fair and swift distribution of funds to failing small businesses.
But rather than solve the problems our leader is reaping chaos through conspiracy theories. The conspiracy theories are becoming widely adopted by a scared, angry grotesquely under-educated and well-armed population. The longer the crisis lasts, the more likely this mob will turn violent.
Why our Government has been the most inept in the developed world is not really the subject of this comment. The subject is Gold. The spot price for gold is hovering around $1700. You can not buy it for that price anywhere. If you can get it it will cost you between $1800 and $2000/ Some of that is due to shuttered production. Much of it is due to the fact that people who are looking at this appalling situation with open eyes are seeing a global destabilization emanating outward from 1400 Pennsylvania Ave that if not stemmed will lead to the greatest explosion in the price of Gold the world has yet seen.'
Even, best case, when we get the virus under control with an eventual vaccine, how do we placate the 40 percent of the broke and angy population who now thinks the virus was just a hoax perpetuated by their blood-enemies, their fellow citizens, in this brave new world of Negative Rates, Negative Priced Futures Contracts, and multi trillion dollar yearly deficits?
By printing and distributing ever greater quantities of US dollars.
Count on it,
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