Why is gold not rising?

Gold Switzerland/Matthew Piepenburg/9-24-2021

photo of gold bars and $100 bills“But we track the movement of physical gold every day, and can say with blunt clarity that the paper trade in gold has zero to do with those otherwise ‘barbarous’ forces of the actual supply and demand of this precious metal. Zero. In short, the paper price of gold has become a fiction accepted as reality, which is not surprising in a financial landscape (i.e., historically over-valued stocks, negative yielding bonds and central bankers allergic to transparency) which defies every measure of honest price discovery or basic capitalism.”

USAGOLD note: Piepenberg asks the question on the minds of most gold investors and market commentators and concludes that “today’s gold price is not nearly as relevant an issue as gold’s role in protecting far-sighted investors from what’s ahead.” In short, Piepenburg believes gold to be more a form of financial insurance than speculation for short-term gains. We at USAGOLD can attest to the strong demand instigated by rangebound pricing – in both gold and silver.

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