$2,000 Gold Price And The Secret Gold Rally Hiding in Plain Sight
The comments below are an edited and abridged synopsis of an article Marin Katusa
Gold went on a tear in all currencies from 2000 to 2012. However, after that, gold priced in US dollars has under-performed. Gold priced in Canadian and Australian dollars has been strong and is within striking distance of all-time highs.
The reason for this out-performance in Canadian and Australian dollars is due to US dollar strength versus Canadian and Australian dollar weakness.
Many say there’s a race to the bottom in currencies. And while this may sound dire, it’s great for resource companies in the right jurisdiction. Gold prices in Canada and Australia have risen faster than production costs, which creates a large windfall thanks to the currency depreciation.
Cash positions and valuations for Australian gold miners are the highest they’ve been in 5 years. It’s a far cry from the multi-year lows in North American gold markets.
This need for a safe haven—an escape from the dollar—and a hedge against the stock market is setting up gold for a massive run.
If the Fed continues to raise interest rates and pops the stock market bubble, investors are going to flee to the one safe haven that has stood guard over people’s wealth for the last 4,000 years: gold.
And if the system keeps chugging along, the $7+ trillion that central banks around the globe have pumped into the markets over the last 6 years is almost certainly going to kick off a massive wave of inflation that will send gold prices soaring.
On top of that, emerging powers like China, India and Russia continue to be active buyers of gold bullion, and the doomsday clock is closer than ever to midnight because of the growing instability of the Trump presidency, the European Union and the Middle East.
Katsua discusses people; projects; value; promotion; catalysts; and the numbers—past, present and future.