Wells Fargo head of real asset strategy, John LaForge, penned the report, noting that gold has been on a strong three-year run with the price up about 35% in 2020 alone. He outlined three primary reasons gold has gone up.
- Low real long-term interest rates.
- Excessive global money printing (quantitative easing).
- A weakening US dollar.
It’s called ‘trust.’ Trust in money, over the very long term, has been a fickle thing. No paper money has survived time, while gold has. Gold is history’s trusted ‘store of value.'”This is why gold, through much of history, has been tied to money. If history tells us anything, it is that money is only worth what someone else is willing to give you for it. If it can’t be trusted to have value, what was once money can become worthless. It seems that recent generations know little about gold and its historical role. Gold was ditched by the West as money about 100 years ago, in favor of trusting government and institutions.”But there are plenty of reasons not to trust government and government institutions.
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