bullish case for gold is same as it was. each reason has gotten more severe. debts, inflation, politics, policy.
central banks were net sellers of gold, now net buyers.
the fundamental case for owning gold is strong and growing stronger. people in Asia have a better fundamental understanding of owning gold.
inflation vs deflation: there may be a deflationary period, but central banks have made it clear the remedy they will provide is to inflate, because they believe it will ultimately work. incredibly bullish for precious metals. the bull run ends when central bank policy changes. when the printing press is taken away from them, and people are not willing to accept a few basis points of interest.
in the 70s, there were no Asian buyers of gold, they didn’t have the money. there was not the concerted buying outside of the west that there is now. the collapse in 1980 happened when volker put the interest rate in the teens. when rates start to rise, either because the market sets rates higher or the FED raises rates, then it will be over.
that day is rapidly approaching. maybe this year, maybe next.