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Gold....

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Is there any way of knowing or any data analysis to indicate how much of the current gold price is related to the increase in the money supply, how much is due to demand and how much is due to the covid crisis/economic situation? I dont know but i wonder if most of the gold price is due to increased money supply?

I was considering buying some brittanias for the lowest margin possible rather than an ETF.

Thanks
Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..

Comments

  • maxsteam
    maxsteam Posts: 718 Forumite
    500 Posts First Anniversary Name Dropper Photogenic
    Is there any way of knowing ...
    No. The price is determined by market sentiment about the news rather than the news itself. If enough people believe that, for example, the unblocking of the Suez canal will make people want to sell gold, then people will sell gold because of this belief and not because of the (largely irrelevant) unblocking. There is a lot of hype and there are a lot of inexperienced investors in the gold market so there is often no logic in the price movements.
  • HansOndabush
    HansOndabush Posts: 470 Forumite
    100 Posts Name Dropper Photogenic
    The price of gold is very correlated to expected inflation less return on bonds I.e. to the real return on bonds. Due to massive QE, there is a lot of inflation expectation, however 10 yr US treasury bond yields have also risen sharply which has dampened the demand for gold.
    Other than the above, any unexpected news like a war can send the gold price higher due to fear of collapse in other asset classes.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You do realise that gold is priced in US $.  ;)
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