"Buying gold is just purchasing a put against the idiocy of the political cycle. It's that simple." - Kyle Bass.
Inflation is lower. Real rates for bonds are higher. Yet, gold is near all-time highs. It may not be the political cycle but the uncertainty cycle. The combination of trade wars and policy uncertainty, with talk of a new world order, drives gold buying. If you don't want to buy the dollar and you are wary of other currencies, gold is a good place to be as a safe asset. Can we place a valuation number on the price of gold? No, this is the difficult part of the process, yet uncertainty seems to be the key causal driver.
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