the g spot
The gold rush is here
We asked Mergence analyst Peter Major whether it’s inevitable that gold will continue to gain as long as central banks keep printing money
It’s not just Big Tech that’s had a fabulous market run of late — gold has just poked its way through yet another record, rallying above $1,930 an ounce this week. It is only the third time it has enjoyed such a surge since the gold standard was dropped in 1971. As Bloomberg’s John Authers wrote this week, "when bond yields are negative, gold’s lack of income ceases to be a problem", so it finds support as central banks slash interest rates and pump money into Covid-stricken economies. We asked Mergence analyst Peter Major whether it’s inevitable that gold will continue to gain as long as central banks keep printing money.
PM: Yes, I think it’s almost that simple. Obviously very dependent on how "much" money is being created and how fast. But the fact that interest rates are zero helps even more. Gold was running in the 1970s when they were printing money. But at least you were getting 12%-14% on your money on bonds and many other investments — granted, inflation was also quit...
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