🔴 Why The Price of Gold Keeps Going Up (w/ AK)

So what’s behind the gold run, and is there still a case for buying in at these levels? AK walks viewers through some of the ways that Real Vision’s guests are making sense of the yellow metal now.

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Why Are Investors So Suddenly Crazy about Gold? (w/AK)

Transcript:
AK: If you want to get an argument with someone, just tell them what you think about gold. For some reason, gold inspires a passion that's usually reserved for debates about socialism. So today, let's have some fun and talk about gold. So far, it's up 16% in the last year, putting the stock market's performance to shame. But why are prices rising? And how much farther is it going to go? Well, that's what we're going to talk about on this week's episode of Real Vision's The One Thing. What's going on, investors? AK here. We've heard a lot about gold on Real Vision lately, and some of that coverage was because of our recent Recession Watch Special. Because, of course, when people talk about recessions or financial crises, they're going to bring up gold. Dan Tapiero of Gold Bullion International explained why that is.
DAN TAPIERO: My only point is that gold, it's a hedge in the traditional system, for the traditional system. Stocks, and most people who are long stocks and bonds, gold is a good hedge.
AK: It's that simple. When the stocks and bonds go down, people expect gold to rise or at least maintain its value. Luke Gromen explains that phenomenon.
LUKE GROMEN: But I think gold is really useless for about 99% of the long economic cycle. And then in the 1% of the economic cycle, the long economic cycle, which tends to correlate or coincide with sovereign debt bubbles globally, it's critical to own.
AK: Luke isn't alone in that line of thinking either. Here's what Raoul Pal said about gold in his piece kicking off recession watch.
RAOUL PAL: Gold is an option on the end game. So, if we are going to go to extreme monetary policy, which looks like I've walked you through a set of pretty easy probabilities that that could happen in the next 18 months, well then gold has to go higher. Now, sure, if the dollar goes higher, gold's going to come back a bit, but over time, I think the dollar and gold go higher, and gold goes a lot higher over the longer run. And it's now acting as that probability on this end game.
AK: Now, when you're talking about a strengthening dollar, you're talking about a dollar that's gaining value against other currencies. But gold can gain value even faster. In that scenario, gold can keep rising even as the dollar rises too. Greg Weldon discussed a dynamic around the world where countries are trying to create inflation and growth by devaluing their currencies. And as he explains, that could be a dream scenario for gold.
GREG WELDON: Would it make sense that gold is appreciating at all paper currencies, because essentially, what you really have going on here, at the end of the day, the most base case, at the instinctive level is a growing uncertainty, fear and even mistrust around all paper. They're just going to keep printing more and more paper every time there's an issue around disinflation, deflation. Well, at some point, there is a level of uncertainty and anxiety around all that paper. And it is IOUs. Currencies, sovereign debt, it's all the same, it's an IOU. And it's kind of cliche, but it is powerful. And it's true, the dynamic around gold being an offset to all of this paper that they just keep printing.

[kennethholman]

GOLD HAS BEN MONEY FOR THOUSANDS OF YEARS AND WAS TAKEN OFF THE TABLE IN THE PAST FIFTY YEARS. SO WHAT IS

[fredfrond]

Gold is a store of value. One ounce bought a toga, a night at an inn and a good meal in Rome. Now you can buy a good suit, a night at a hotel and a diner at a good restaurant. Once once of gold in 1971 had a set price of $35 fixed by the US fed you could not have bought the three items I mentioned. That is why Nixon left the gold standard because the value of gold was set too low and by 1982 the price of gold was USD 800.

[MetalBum]

Man I been talking gold for years and only got 500 viewers

[PINKMACKINE]

seems like the two hot things are bitcoin and gold

[geoffmcarthy]

I’m going to buy gold ... with all my ...

[Gold_Silver.]

Gold & Silver to the 🌕 baby we out 🚀

[MetalBum]

Gold always has its time. And the time is soon

[libertysprings]

AAAU is physical gold held at Perth Mint & backed by the Australian govt I think.

[williamwilson]

Long term, gold is a hedge...it’s not an investment. Gold has less value now than it did back in January of 1980.

From January 1975 when Americans could legally own gold, the return on gold adjusted for inflation is approximately .8%.

The same timeframe, the S&P has returned 4.9% and 7.9% dividends reinvested.

Where would you want the bulk of your money?

I own physical gold and I trade gold related options...it helps to balance the portfolio.

[nachannachle]

Because Real Vision Finance is obsessed by it?

[ashthegreat]

Because it can only be made in exploding super-novae - not mathed into existence in some glorified database like shit-coin or other corrupto-currencies

[freespirit]

This looks like a rip of of the real Real Vision

[noahwhipkey]

Read people's eyes. Physical over etfs, who the fuck wants to buy a mining company?

[elbowsanchez]

Now if Minority Mindset would just preach this instead of all the other bs.

[fugetabouit]

Gold should be at least 5k to 10k by now dumb question why shouldnt it be going up. Look at the toilet paper Fiat Petro crap dolla. Should be worth squat!

[freeman]

We'll see what happens - but I'm not really looking forward to anything remotely close to an apocalypse.