The mystery of gold prices

Yahoo!Finance-The Economist/Buttonwood/7-13-2023

“What is going on? Working out the right price for gold is a difficult task. Gold bugs point to the metal’s historical role as the asset backing money, its use in fine jewellery, its finite supply and its physical durability as reasons to explain why it holds value. After all, at first glance the phenomenon is a strange one: in contrast to stocks and bonds, gold generates no cash flows or dividends.”

USAGOLD note: Since the turn of the century, gold has responded most directly to crisis. Much of this Economist article focuses on gold as an inflation hedge. We feel misses the point about gold,i.e. why people buy it. Too, we do not see where it sheds much light on the mystery of gold prices.