Robert Kientz Blog | Gold’s Multi-Decade Bull Market Has Steeper Climbs Ahead | Talkmarkets
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I have been analyzing the precious metals markets for over 10 years, and have built relationships with many experts in the field which include miners, geologists, and analysts. My site is dedicated to providing ... more

Gold’s Multi-Decade Bull Market Has Steeper Climbs Ahead

Date: Saturday, June 8, 2019 1:53 PM EST

Gold vs. World Currencies

In a previous article I had written about gold’s cheap price in currencies around the world. That is not to say that gold has not done well recently in different world currencies, just that it has under-performed relative to the massive printing conducted in currencies across the world.

Source:  me

While accurate, my report didn’t show how strongly gold has performed as of late. It is true that gold has done well, which should be recognized. However, the gold price still has plenty of catching up to do around the world when considering the blatant debasement the central banks have done to their fiat paper currencies in the interests of avoiding inevitable economic recessions.

Around the same time I published my gold vs currency piece, Incrementum’s recently published “In Gold We Trust” report (free registration) called out the outstanding performance of gold versus popular currencies since 2001.

As we can see in the table, gold has appreciated in popular world currencies by an annual average of 9.4% since 2001. Put in a different perspective, gold is at least partially tracking the inflation of popular currencies during that time frame.

Gold price just hasn’t tracked all of the fiat currency that central banks have dumped into the markets. This gives gold investors reason to be bullish on the future price of gold eventually catching up with the debasement of paper money, as it has traditionally done over time.

Thankfully, Incrementum’s latest gold report provides us a handy chart for tracking US dollar cycles since 1973, shortly after the US exited the gold standard.

 

The current dollar index value action is following past downward cycles. If the trend holds true, we can expect a devaluation of the dollar against other world currencies, which would continue to be bullish for gold. Gold is still quoted and traded in many markets in dollar terms.

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