It’s going to be wild. Hold on to physical gold.

Degussa Market Report/Dr. Thorsten Polleit

However, even such a scenario wouldn’t necessarily mean that central banks would end their excessively expansionary monetary policies because the entire economic system as far as consumption and investment is concerned has become dependent on artificially suppressed interest rates and the continued printing of money. Under these conditions, it appears to be highly likely that the purchasing power of basically all official currencies – be it the US dollar, the euro, the British pound or the Swiss franc – will come under pressure. It is against this backdrop that the relative attractiveness of holding gold from an investor’s viewpoint increases.”

USAGOLD note:  That pressure, reading between the lines, is likely to manifest itself as higher gold prices in all the currencies mentioned. That has been the trend for some time now, as shown in the chart below on the price of gold in the four largest volume currencies since 2016 – the dollar, euro, yuan and yen.

Gold in four major currencies
U.S. dollar, Chinese yuan, European euro, Japanese Yen
(2016 to present)

overlay line chart showing the gold as priced in the four top currencies over past five years

Chart courtesy of TradingView.com • • • Click to enlarge


Repost from 11-20-2020

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