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Originally Posted by https://www.welt.de/wirtschaft/article212912200/Goldpreis-Die-2000-Dollar-Marke-belegt-fehlendes-Vertrauen.html
The gold record is also a vote of no confidence against politics
The precious metal will cost more than $ 2,000 for the first time. This is also due to the corona crisis. But the real reasons lie deeper - the massive price surge also directs the focus on central bank policies and their handling of the euro, dollar and Co.
Gold has made history twice in just a few weeks. It was only in July that its price in the key currency, US dollars, broke the previous record high of September 2011, which had been at $ 1921. And on Tuesday, it was trading above $ 2,000 for the first time.
This clearly demonstrates the dynamics currently prevailing on the market for precious metals. The reason for the massive price increase is always the uncertainty that results from the consequences of the Corona crisis for the global economy. That is not wrong, but the causes are deeper.
In order to recognize this, it is worth looking back. The record of September 2011, which was valid for many years, resulted from the currency turmoil from a currency crisis. It was not until Mario Draghi's promise by the European Central Bank to do whatever it takes to save the common currency that the markets calmed down. As a result, the gold price fell again, also because there was an investment alternative with the bond market that - unlike interest-free gold - could be used to generate returns.
That has changed. The collateral damage that the major central banks - worldwide, and not just in the euro zone - accept with their limitless flood of liquidity and their zero interest rate policy is a global market for government bonds, in which there are now over 14 trillion bonds Bring in dollar negative returns.
It has been observed for years that this development has a clear correlation to the gold price - large investors are apparently switching from bonds that cost them money to the precious metal, which does not generate interest, but at least does not cost investors any penalty interest.
The billion-dollar rescue packages that governments and central banks are now putting together in the fight against the corona pandemic - as correct and appropriate as they may be - will continue to fuel this trend.
It has now taken its toll on politicians for almost a decade to waste the time that the central banks bought it to stabilize the foundations of public finances with decisive reforms after the devastating financial and euro crisis. And still no one knows how far the aid packages can carry. A second wave could require a similar action to save the economy.
The debt burden of the western industrialized nations was immense even before the corona pandemic - and only because the central banks kept interest rates low and thus redistributed wealth from citizens to the state.
Now, however, the quotas continue to rise, the states are reaching the limits of debt sustainability. And this is also expressed by the gold price: confidence in the currencies has deteriorated. In retrospect, it does not seem to be a coincidence that the low point of the gold price fell in the founding phase of the euro. The common currency has since lost a good 80 percent of its value in gold.
Many investors and those in whose sight the metal is now falling due to the record hunt may now be wondering whether the price will continue to rise. It depends on many factors. One of the most important is the question of whether politicians and central banks recognize a stable currency as a value in itself - and act accordingly.
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The states will crave to implement ways to plunder private gold reserves sooner or later, I fear. They always do like this sooner or later. Some already moved into that direction, India for example. Restrictions in Europe over the past years have nbeen tightened as well, also in Germany.
Gold means private independence from state fraudulent money and state expropriation schemes hidden in harmlessly sounding word dresses. Politics wants dependency of the people, not independence. Nobody should be able to escape the states' and central banks' yoke.
2500 Dollar per ounce of gold within the next 12-15 months imo are absolutely possible.