Gold hit a new record high today for those buying in euros. Let’s investigate gold in US dollar terms and in the Yen.
Gold
Gold Priced in Yen
One Hell of a Ride
That’s one hell of a ride. If you bought gold in Yen in 1980 you are still underwater.
Wow.
Where to in US$?
Gold is roughly $300 away from a record high in US dollars.
I expect it to top that easily within a couple of years and by the end of 2020 would not surprise me in the least.
Fed monetary printing and US deficits are out of hand.
Mike “Mish” Shedlock
I’ve always had a yen for gold.
Based on fundamentals, gold should be way higher than it is, but fundamentals have little to do with the current bid price of anything nowadays.
I think one thing adding to the rise in the price of gold is something that was considered a conspiracy theory, gold price manipulation. It looks like that conspiracy theory turned out to true and some will be going to jail, then again, power and money can keep folks out of jail as we see continually in Washington. In any case, the price of gold isn’t being manipulated like it was in years past and I trust that is also bullish for gold. Heck, one can throw a dart at a wall and come up with myriad reasons to be bullish on gold in today’s world. The world’s longest used currency isn’t printed by governments and it will outlast every and any fiat currency in existence.
I’m more bullish on gold than I have been in quite awhile and I completely agree with Mish that we will see a new all-time high in gold priced in USD. Speaking of which, if not for the spike in the Yen back in 1980, gold would be at an all-time high in the Yen. Looking at gold price dot org, gold closed at an all time high yesterday in 82 of the 158 currencies they track. Today, it’s at an all-time high in another five currencies, including the Russian Ruble. Ten other currencies are similar to the Yen and would be at all-time highs if not for spikes in the currency in years past. Several dozen other currencies are knocking on the all-time high door as well. Me, I’m just digging watching my mining stocks provide returns in many multiples of gold’s recent rise. I’d expect all-time highs for gold in every currency it is priced in and we will see it sooner rather than later.
I am so beaten down, that for years every time someone starts talking positively about gold I wait for it to get smacked down. I hope this time is different. I am shocked it is holding above 1600.
Central Banks have lost their last shred of “credibility”. The Gold price is only beginning to reflect that.
It is only due to sheer luck (demographics and globalisation, mainly) that we have not already had a catastrophic hyper-inflation as a result of their multiple, insane policy blunders.