Gold pushes higher in continuation of post-Fed seesaw price performance
‘What is your peace of mind worth?’

(USAGOLD – 3/23/2022) – Gold pushed higher this morning in a continuation of its seesaw performance since the conclusion of last week’s Fed meeting. It is up $9 at $1933.50. Silver is up 24¢ at $25.11. This morning, Claudio Grass, a Swiss-based investment advisor who looks favorably upon gold, addresses a question he sometimes gets from first-time investors looking into gold: Is the metal simply too expensive at current prices? His standard reply, he says, is “expensive compared to what?”

“Now, while these are the sort of arguments I would usually bring up in conversations about ‘how high is too high’ when it comes to the gold price,” he says in a report posted at Eurasia Review, “the events of the last two years have made [me] realize that there [is] so much more to this question and led me to reconsider the way I answer these questions. It really does go a lot deeper than a comparison between gold and stocks, or considering the better ‘play’ for one’s portfolio performance. The real counter-question now is ‘what is your peace of mind worth’? I’ve always outlined this deeper way of thinking about this issue, and I’ve always found many who agreed with me among the rational, responsible, long-term gold investors.”

Editor’s note: Grass’ observations come on a day Bloomberg announces that the global bond market (gold’s chief competitor for strategic safe-haven capital flows) has “wiped out” $2.6 trillion in investor asset value, exceeding the losses incurred during the 2008 credit meltdown. As you can see in the chart below, gold is tracking higher with rising yields (a reflection of the sell-off in the bond market).

Gold and 10-year Treasury yields
(Six months)

Chart courtesy of TradingEconomics.com