"A hedge against what some investors fear is the potential collapse of the entire monetary system" - First Gold Group
Forbes recently published an article highlighting the roughly 30% rise in the price of gold since March 2020 and a couple of underlying fundamentals which are typically correlated with an increase in the price of gold, namely the falling value of the dollar and a loose monetary policy that sends real bond yields lower. More importantly, however, the article emphasizes that a couple of other fundamentals that typically adversely impact the price of gold, low inflation, and a strong stock market, have not impacted the ability of the metal’s price to increase so substantially. With the fundamentals not adding up, the author opines: