Gold is expensive and may be just warming up

BloombergOpinion/John Authers

“Gold’s value rests in the eye of the beholder … The fact that we will never scientifically arrive at a ‘correct’ price need not stop us from trying, however. And after going through the various valuation exercises, the rally looks rational. While the current price looks expensive, it could easily rise further.”

USAGOLD note:  As we are fond of saying, “gold’s value is relative.” It doesn’t really matter how many digits it takes to express the price. Its true value rests in its comparison to the purchasing power of the currencies in which it is being priced and the anticipated value of those currencies in the future. Authers, one of our favorite financial writers, has it right when he asks “Is it overpriced?” then answers: “The question is impossible to answer.”  (Please see this morning’s Chart of the Day below, i.e., gold expressed in various major currencies over the past 12 months.)

Repost from 8-8-2020

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