The Gold Observer/Jan Nieuwenhuijs/1-14-2022

“…[P]eople have embraced stocks and real estate as “the perfect store of value,” because these assets have continued to go up and pay a dividend or rent. Previously, I have written why I think these asset markets are in a bubble (here and here). Although, bubbles can last longer than you think, when they eventually pop, investors will be looking for an alternative store of value. Where to go when stocks crash and government bonds can’t offer a positive real return? Historically, gold has usually functioned as the asset of last resort.”

USAGOLD note: In this second installment on gold pricing mechanics, Nieuwenhuijs dissects the relationship between real yields and the price of gold. Here is the link to the first installment.