Originally Posted by
Aaron
Too true, I don't know if anyone knows for sure. Historically it was probably yesterday when I caught gold fever and got wrapped up in the big rise and went out further on the risk curve.
My naive and uneducated basis for gold going higher is that central banks are not proposing anything other than lower (even negative) interest rates and money printing (there is no limit to money printing - Jerome Powell).
Governments are spending up large. I think in the USA some are saying that deficits don't matter any more and it doesn't look as though Japan or the US govts. have any intention of paying back their borrowings. They "have to have inflation" to take care of their debts.
How it ends I am unsure as current economic thinking and monetary policy are at historic extremes. It seems like a ponzi scheme that requires more and more printing and lower and lower rates every time there is a crisis (a trend since the 1980s) with no will by voters or anyone in power to change course. So I am picking that gold prices might get extreme as well, as long as central banks keep printing money and suppressing interest rates(markets should decide this price imo) and continue to hold gold. Why central banks continue to hold gold I am unsure but it probably helps to keep faith in currencies somehow.
On the other hand it could be an increase in uneducated speculators like myself pushing up the price and they will drop it like a hot potatoe as soon as it goes out of fashion.