Traded gold for awhile now and I can say the gold market broke in 2011. It’s not a hedge for anything because it’s correlated to equities (and other risk assets such as crude). It’s really a speculation asset (think bitcoin). In fact, a lot of energy behind gold came out of the 2011 peak and the bust that followed and into crypto currencies.
Having said that, with crypto now all but finished, and with roughly $2-3T in stimulus about to hit US and EU economies, I believe gold will see a rise in the next year or so. Especially if you buy it against the euro.
> Having said that, with crypto now all but finished
Bitcoin will come out of this stronger than gold.
It got the wrecked for the same reasons gold and silver did. People needed funds for margin calls and safe reserves, and bitcoin markets were already far less liquid than gold and silver. An emerging currency can't help but be volatile.
Coming out of this, it will explode for the same reasons. It's less liquid, and there will be less supply to feed demand when people go for 'safe' assets.
Young people have no trust in gold or silver. It's another metal with no intrinsic value other than being heavy, inconvenient to spend, and really inconvenient to transfer across borders. Bitcoin is at least half a step better than that, and a half step ahead of any other cryptocurrency competitor when it comes to institutional and retail availability.
Huh. I think I read once where it was pointed out that gold is useful when there are all sorts of controls on capital flight and customs and so on, because you can (or someone who looks well off can) wear something like a gold watch (or maybe other jewelry) that is relatively easy to buy and sell, but doesn't trigger any alarms or barriers.
Having said that, with crypto now all but finished, and with roughly $2-3T in stimulus about to hit US and EU economies, I believe gold will see a rise in the next year or so. Especially if you buy it against the euro.