"What does this mean for the price of gold to make it all relevant: (a) bond market crash - gold will probably fall too (b) QE forever - gold goes balistic."
Perhaps I'm biased and am not thinking about this clearly:
a) bond market crash - there is no safe financial asset except for gold, bonds are bad and cash is bad . Gold goes up and is stable, as devalued assets rush to preserve some value. Good for gold miners as cost of production decreases.
b) qe forever - currencies collapse and gold goes through the roof as people realise that the paper assets they hold are increasingly worthless and need to move towards the ultimate store of value currency
Either way the currency system is not good. I see gold mostly being a win/win scenario. Its just that one win will be significantly greater than the other.
Option b is the easiest option politically and we are in an environment where it is very easy to achieve (past scenario's e.g. great depression were in a semi hard-currency regime whilst today we are not). I think this route is guaranteed, but they are doing a great job of creating confusion on the matter.
FML Price at posting:
7.6¢ Sentiment: Hold Disclosure: Held
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