Daily Reckoning: Sticky Inflation Means Gold Will Keep Rising
Article by Byron King in Daily Reckoning
How much gold do you own? The correct answer is: “Not enough.”
Today’s gold price is over $2,900, which means that the purchasing power of a dollar over the past century-plus has shrunk by a factor of 145 times. In other words, a single dollar back in 1914 is the equivalent of $145 today. This is why people and institutions (certainly central banks) are buying gold. And it’s why gold deserves a place in every portfolio.
Let’s dig into what’s happening with gold, what it means, and how to deal with it.
Gold Prices Have Been Rising for Quite a While
On Jan. 20, 2025, when Donald Trump was inaugurated, an ounce of gold was quoted at $2,740. Now, a month into Trump’s second term, that same metal will set you back over $2,900, a rise of not quite 7% in just a few weeks.
But don’t blame the rising gold price on Trump. Hey, after only a month in the Oval Office, this is not (yet) Trump’s economy. Many Biden administration legacies ......