In over night trading on July 27th, gold broke through its all time high reaching over $1940 per ounce before retreating. We are in the middle of a dangerous monetary experiment and the world is waking up.
Gold could be in the middle of a monster move. I recently wrote an article on Seeking Alpha showing how gold could go as high as $3465 based on its relationship with M2 money supply.
The recent rise in gold is a mirror image of the dramatic decline in the US dollar.
What really drives the price of gold? Real yields. The following chart plots real yields (inverse) against the price of gold. As real yields decline (show by a rise on the chart) gold prices rise. (Read more about it here.)
Annual purchases of gold ETFs highest in 15 years. And 2020 is only half over.
Still think gold is a barbarous relic that has nothing to do with the monetary system? Well, central banks around the world have been accumulating gold reserves since the 2008 Global Financial Crisis.