Gold price is linked to inflation

1. Gold price is linked to inflation

If inflation increases, gold prices will increase. That's what seems to have happened over the past 15 years from 2002 to 2017. Inflation was high, so gold prices have increased.

But inflation is likely to be low world over for a long time to come, especially in developed countries with little or no growth both in economy and demographics.

Another way to look it is, there is lot of money pumped into the economies of the world by world's central banks. This could lead to inflation. So, gold prices could move higher.

2. Gold prices are affected by demand and supply

The supply of gold is likely to come down drastically because discovery of new gold mines have dropped drastically over the last 10 years.

However, demand for gold could depend on the inflation.

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Interview with Pierre Lassonde, one of the smartest guys in mining. One of the smartest guys in the world. Pierre is the billionaire founder of top mining royalty firm Franco-Nevada.

https://katusaresearch.com/man-gold-royalty-blood-receals-whats-store-1300-gold/?curator=alphaideas&utm_source=alphaideas

https://katusaresearch.com/dinner-billionaire-wine-connoisseur/

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Gold miners are running out of gold

https://katusaresearch.com/gold-miners-running-gold-heres-thats-good/