GOLD ,,,,,
Gold
Gold has been rising at a remarkably steady 21% p.a. for the last ten years. About 11% of that might be due to the current debasement differential, while the rest might be a combination of catch up for the period 1980 – 2001 when the gold price fell substantially in real terms, fear over the possible abandonment of paper currency, and the possibility that gold will re-enter the official money system. Under the scenario outlined above, the rate should remain roughly similar.
In particular, banks and government cannot print it. And who hates gold? The monetary elite and governments prefer their dishonest money. They enjoy the first use of the new money, spending it before it pushes up prices. Governments can print to cover their debts if necessary. For centuries the greatest game in banking has been to buy assets in a sector, approve more lending for purchases in that sector, then sell their assets when the prices subsequently rise, then cut off lending into the sector and watch the prices fall - rinse and repeat every few decades.
The total amount of debt in the world in 2011 was around 210 trillion USD, and the world’s GDP was 60 trillion. Yet the value of all the gold ever mined, going back to the Egyptians, is just 9 trillion USD. If gold ever re-enters the official financial system, it will have to move up in value quite considerably.
The last gold price rise was 1968 – 1980, when it rose from 35 to 800 USD per ounce. What stopped its rise then? Overnight interest rates around 20%, which made paper currencies attractive and stopped their debasement. Presumably it will take similar interest rates to again stop the rising gold price. But nobody today can afford to pay 20% interest rates, especially governments, so gold is going to keep trending up for quite a while.
https://www.321gold.com/editorials/evans/evans081612.html