If one compares the US monetary base per capita vs the price of gold in US dollars, we can see a historical relationship that diverges for long periods of time, but always seems to return to a closer relationship during periods of financial stress.
This is the case that some might make for gold with a price target of $5,000 per oz., which the potential to spike as high as $12,000.
Personally I hope we do not see financial stresses that drive the price of gold to that higher level.
These charts are from Nick Laird at goldchartsrus.com.
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