Gold has a very long history of being treated as real money. Fiat currency have a real long history of failing. In the Oct crash gold fell to about 680, roughly a 32% drop from its high. It then proceded to come all the way back up to 1000. What other “commodity” did this? Gold is being treated like real money now. I personally think the US$ is a lot stronger than people think it is. But the world is liking gold. Golds relative strength is now greater than any other asset class. I’m not sure where the price will go from here, but I can tell you the gold mining companies will become more profitable as gold stays in this price range. Just look at where their prices have gone from the Nov lows! Many have doubled since then and are holding tough.
Nothing is certain about the future. Place your bets accordingly.
