Is Gold Really Worth $40,000 Per Ounce?
In a new commentary on Forbes, Todd Ganos steps back and looks at gold’s recent volatility through the lens of the yellow metal’s traditional role: gold as stable, incorruptible money.
“Recently, there has been quite a bit of volatility in the dollar price of gold. It certainly can’t be that the fundamental value of the United States dollar is experiencing wide swings. We don’t see the dollar price of bacon or bread or a car wildly gyrating. But, given that gold is money, in a sort of cross-currency context, the prices of bacon, bread, and a car ARE wildly gyrating . . . relative to gold. Of course, history would suggest to us that the price of bacon, bread, a car, gold or most anything should be stable relative to each other over the long run. So, it would seem that the recent price swings in gold are driven by speculation as opposed to fundamentals.”
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