Gold’s monetary credentials suggest near-term upside

Seeking Alpha/Stuart Allsopp

photo of newspaper with gold prices circles“In our view, the reasons behind the strong correlation between gold and inflation-linked bonds is that investors rightly see gold as money which competes with fiat currency. The less desirable fiat currency becomes in terms of the expected level of interest rates relative to the expected level of inflation, the more desirable gold becomes. We have no reason to think that the arrival of Bitcoin or any other asset will sustainably undermine the monetary appeal of gold. We also have no reason to expect real interest rates to go anywhere but down over the coming years.”

USAGOLD note:  Subdued, but mildly bullish advice on where gold might be headed in the weeks and months ahead ……

Repost from 1-26-2021

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