| To very little fanfare, the price of gold has shot up over the past three months. Since bottoming out below $1,630 an ounce in October, gold traded up to $1,950 last week. That is only 6% below its all-time high price near $2,074 achieved in August 2020. In the early days of the coronavirus pandemic, central bankers around the world flooded the global financial markets with liquidity to prevent an economic collapse. And since putting more money into the economy without a comparable increase in productivity is inflationary, the price of gold and other commodities shot up. When it became apparent that the economy was going to hold up, the price of gold receded below $1,800. At that time, there was nothing in the monthly Consumer Price Index (CPI) numbers to suggest that inflation was about to take off. Read More... |
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