Gold bugs are always optimistic about the price of gold. Like a 1950’s stockbroker, or a used car salesman, they always seem to say “The sky’s the limit!” What we see in reality has been different than that, of course. Gold prices go up and down, usually in reverse-step to the value of local money, and often shooting up in times of discord.
This past year gold has not been as volatile with respect to international events as it was in the past, as central bankers continue their “we can fix anything” chants. But China’s recent move to trade oil in gold-backed yuan is seen as a real game-changer. Hugo Salinas Price, a well-known billionaire businessman, recently wrote up his thoughts on the modern history of gold and how this move by the Chinese is likely to affect future gold prices.
Your Gold Enthusiast thinks this is the start of a real sea change, and American policy makers need to be paying attention before the US Dollar gets set adrift.